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Purchase Price Variance (PPV)

PPV is important for budgeting and planning purposes, particularly when companies are deciding what quantities of items to order.

PPV = (Actual Price - Standard Price) x Quantity

Formula used in these DataSelf templates:

  • _Purchase_Order: Purchase Price Variation PPV by Company, Item, Item Cat, Vendor, & Whse.

  • The Item Std Cost calculated measure usually requires adjustments.

Further info:

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