PPV Summary
Dashboard Path : Purchasing -> Purchase Price Variance -> PPV Summary
Items that are Standard Costed go into Inventory based on their Standard Unit Cost defined for the Item. Receiving Purchased Items at a different Unit Cost other than the Standard Unit Cost gives rise to Purchase Price Variance (PPV). When the Actual Unit Cost is less than the Standard Unit Cost then there is a Negative PPV (-ve Variance). When the Actual Unit Cost is greater than the Standard Unit Cost then there is a Positive PPV (+ve Variance). The purpose of this dashboard is to provide the visibility into what's causing PPV within your Organization. If your organization does not have Standard Costed Items then this dashboard is not applicable to you.
Different Types of PPV:
The Purchasing Cost of an Item can be split into multiple components like Material Cost, Duty Fee, Freight Charges and Brokerage Fee. When this breakdown is maintained in the ERP, this dashboard provides the ability to identify what might be causing the PPV across these cost components.
- Material PPV - This is the PPV arising from the Material Cost of the Item.
- Duty PPV - This is the PPV arising from the Duty Cost of the Item.
- Freight PPV - This is the PPV arising from the Freight Cost of the Item.
- Brokerage PPV - This is the PPV arising from the Brokerage Cost of the Item.
- Item PPV - This is the total PPV arising from the Item's Total Cost. Most organizations only maintain the Item cost, which means that the above mentioned PPV types may not be applicable to you.
In IntelliDash, PPV is computed at the PO Receipt level. On this dashboard we aggregate the PPV across receipts to provide the big picture.
Dashboard Capability:
- The Summary Metrics table provides the break down of the different types of PPV as shown below,
- The 4 bar charts at the bottom display the Positive PPV, Negative PPV and Net PPV. The Positive PPV is the Red bar, Negative PPV is the Green bar and Net PPV is the Blue line as indicated below.
- The 4 bar charts are Dynamic Dimension Bar Charts which means that you can change what should be summarized on the bar chart. Pick from the list as shown below,
- The measure that is summarized on the 4 bar charts can be changed using the drop down shown below.
Metrics | Description |
Std PO Price | This is the Price based on the Standard Unit Cost defined in Items Master at the time of PO Receipt. The Standard Unit Cost is historically maintained in IntelliDash on this dashboard. So even if an item's standard unit cost has changed now, if the item was received 3 months back then the Std PO Price is computed based on the standard unit cost at the time of receipt. Std PO Price = Qty Received * Standard Unit Cost |
Actual PO Price | This is the Price based on the Actual Unit Cost of the item. Actual PO Price = Qty Received * Actual Unit Cost |
PPV Amt (+ve) | Sum of PPV from all PO Receipts where there is a Positive Variance |
PPV Amt (-ve) | Sum of PPV from all PO Receipts where there is a Negative Variance |
PPV Amt | Net of all PPV (Positive and Negative Variance) |
PPV % (+ve) | This is the percent of PPV Amt (+ve) over the Std PO Price of all PO Receipts that have a Positive Variance. |
PPV % (-ve) | This is the percent of PPV Amt (-ve) over the Std PO Price of all PO Receipts that have a Negative Variance. |
PPV % | PPV Amt / Std PO Price * 100 % |
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