Purchase Price Variance (PPV)

Purchase Price Variance (PPV) occurs when the invoice submitted reflects a higher cost than the cost defined on a purchase order. Several root causes can lead to PPV, including ASIN mismatches, PO price decreases, list price/discount issues, and cost update timing discrepancies. Vendors should verify and, if necessary, amend pricing in catalogs before confirming purchase orders to resolve discrepancies effectively. The table includes various PPV causes such as incorrect ASIN assignments or price feed errors affecting invoice alignment with purchase orders.