Construction
Purchase Price Variance (PPV)
Recording the difference between the standard cost of a material and the actual price paid.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Raw Materials (at Standard) | Asset (+) | 1,000.00 | - |
| Purchase Price Variance | Expense/Gain | 50.00 | - |
| Accounts Payable | Liability (+) | - | 1,050.00 |
💡 Accountant's Note
Used in standard costing systems. This highlights to management that materials are getting more expensive than the budget (Standard Cost) predicted.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.