- Restrict the amount that an item can be changed in value by a purchaser.
- Limit the cost difference that can be adjusted by a purchaser.
- Set how much a purchaser can edit when creating a purchase order.
What is a Purchase Price Variance Limit?
Purchase Price Variance Limit sets a limit on how much a Purchaser can increase/decrease the cost of items during procurement.
For example, if Pat has a variance limit of $50, and he is editing an item that costs $100 per piece, he will only be able to increase the value up to $150.
If a percentage Price Variance Limit is set up, and the Purchaser has a limit of 10%, they can only edit orders up to 10% of the value of the item. In this case, if the cost of the item is $25.00 the user is only able to increase or decrease up to $2.50.
Editing a purchaser's price edit variance limit
Select the Settings tab from the left-hand navigation bar.
Select Manage Users under the Set up & Manage.
Locate the user within the list and select them.
Select the Edit Information button on the right-hand side.
Ensure that Limit Purchase Price Edit Variance is toggled On from the right-hand side.
Select the drop-down to determine whether the variance will be logged as a currency value or a percentage value.
Enter the variance limit.
Select the blue Save Changes button.
- Manage User access within the Settings is required to complete the steps above.
- Purchasing permission must be given to a user before you can assign Limit Purchase Price Edit Variance option from their user page.
- For more information on what this feature is used for, see What is a Purchase Price Variance Limit?