Running the Price Variance Report

Use the Price Variance report to check new pricing from vendors or Trade Service to ensure that the system is using your costing and pricing basis as required. Following are two examples of how you can use the report:

If you use average cost as cost of goods sold, run this report to compare a frozen average cost to the current average cost of an item. This report shows gross differences in the average cost over time. Reviewing these costs periodically can help you determine the cause of abnormal increases or decreases.
Compare LIST to another price or cost basis to determine how to adjust matrix cells to maximize profits and enhance customer service. For example, compare REP-COST with your list price to determine how much of a discount you can feasibly offer to customers. Then, create or adjust your sell matrix cells based on those results.

To run the Price Variance report:

From the Price Update menu, select Price Variance Report to display the Price Variance Report window.

In the Branch/Territory field, enter the branch to include in the report. Enter All to include all branches.
In the Price Line field, enter one or more price line IDs for which to run the report. Use the Multiple button to select more than one price line.

In the Allow Decrease and Allow Increase fields, do the following:
Allow Decr - Enter a percentage to limit the report to price changes that have decreased by that percent.
Allow Incr - Enter a percentage to limit the report to price changes that have increased by that percent.

The variance percentages, determined by the product's Average Cost and Last Cost, include products that are above or below the percentages entered, and exclude products that are within the range selected.

For example, to include only products whose prices have increased or decreased by 15 percent, enter 15 in both Allow Decr and Allow Incr field.

In the Basis #1 field, enter the price or cost basis that you want to compare on this report. Average Cost is the default.
In the Exclude Products with Unit Costs Less Than field, enter the lowest unit cost to include for the products in the Basis #1 field.
In the and Basis #2 field, enter the price or cost basis to compare with your entry in the Basis #1 field. Last Cost is the default.
In the Exclude Products with Unit Costs Less Than field, enter the lowest unit cost to include for the products in the Basis #2 field.
In the As of fields, enter the as of date for the basis named in the Basis 1 and Basis 2 fields to include on this report. The default is today's date.
In the Show Product Select Code area, select Yes to include the product select code.

In the Show Only Products with Onhand area, select Yes to include only products that are currently on hand.

Set options, if needed, and generate the report.

What the Report Shows

The Price Variance Report shows the following information:

Columns	Description
Branches	The branches selected on the report
S	Product status from the product record.
Stk Ohnd	The number of product on hand.
Basis #1 and Basis #2	The prices of each product compared by basis names.
Variance%	The difference between the prices listed in the Basis #1 and Basis #2 columns. If the first price column on the report equals zero, the report displays ******* in the variance column.
Product Select Code	The product select code from the product record.
BR	The pricing branch of the product.
Prod ID	The product identification number from the product record.