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:

https://www.investopedia.com/ask/answers/052215/what-price-variance-cost-accounting.asp

https://www.xeeva.com/blog/purchase-price-variance-simple/