The prices of some billed materials or service can increase or decrease due to various reasons such as exchange rate differences, surcharges and commission expenses. Such differences that occur after the invoice is received are called Price Difference and are separately billed to AR/AP.
The price differences originating from purchase transactions may increase or decrease the purchase income. The Purchase Price Difference invoices are visually similar to other invoice types except for a few fields.
In purchase price diff. invoices the invoice lines are matched with purchase invoices. The lines of the selected purchase invoice can be transferred into the Price Difference invoice except for the Quantity and Amount information.
The Price Diff. Amount is distributed into the lines of the invoices matched with the price difference. The distributed price differences are also listed in the Cost Analysis and Inventory Reports, and are processed in profit/loss calculations.
The Purchase Price Difference Invoices are recorded using two methods:
- Using "Apply Price Difference" option in the Purchase Invoices window. In this case, the relevant information is automatically transferred into all fields of the Price Difference Invoice. The Related Invoice column displays the information of the invoice to which the price difference will be applied.
- The Purchase Price Diff. Invoice is selected as the Invoice Type in the Purchase Invoices window. The information about the price differences are recorded in the Related Invoice Number column after selecting the material or service to which the price different will be applied.
Relating Invoice Lines with Purchasing Transactions
The Orders and Dispatches can not be transferred into the lines of the Purchase Price Diff. Invoices. Furthermore, Fixed Asset, Deposit, Promotion, Discount and Surcharge transaction line types can not be used in Price Difference Invoices.
Once the material / service is selected in the Price Difference Invoice lines, the transactions of the related material are listed by clicking on "..." icon in the Related Invoice Number field. The Material or Service Transactions list displays only the purchase transactions. The transactions at the Period Closing Date of materials / services for which the Period Closing operation is performed, and the invoices with dates before the Approval Date can not be selected.
In purchase price diff. invoices each Price Difference line can be matched to a single purchase transaction. If price differences will be applied to more than one purchase transaction in the same Material / Service, the lines with the same Material Code / Service Code are entered and related in the Price Difference Invoice.
The Material Transactions or Service Transactions window displays the invoices with the Date, Slip Number, Invoice Type, Net Line Amount, Price Difference Amount, Division, Department and Warehouse information. "Find" button is used to search for the requested invoice, and "View" button is used to display and view the selected invoice. The following information is transferred into the fields when the lines are related to purchase transactions:
Stock Amounts: The Stock Amounts field located in the middle of the invoice indicates how the material or service will be affected by the price difference. Increase or Decrease option is selected, and all amount information is processed depending on the selection made. When decrease is selected, the information entered into the Amount field is interpreted as minus 
by the application.
Stock Costs: Used to specify whether the stock costs will be affected by the price difference or not. Contains the following options:
- Will be affected
- Will not be affected
When "Will not be affected" is selected, the change in the material price does not affect the stock costs of the materials.
If "Will be affected" is selected, the stock costs are affected in the direction of the selection in Material Amounts field.
Related Invoice Number: Displays the related invoice and line numbers.
VAT Rate: The VAT rate of the related transaction.
Transferring Purchase Invoices to Sales Invoices
The relevant Material / Service Code must be entered into the invoice line in order to match the purchase price diff. invoices with the purchased transactions. The matching operation can be performed only after the code entry, and separately for each line.
If the price difference will be applied to the bottom of a specific Purchase Invoice, all the invoice lines are transferred using the Invoice Transfer option located in the right mouse button menu, instead of transferring the lines one by one.
The invoices are matched with the purchase transactions by invoice date, entering the Start and End Dates. The purchase invoices of the AR/AP to which the purchase price diff. invoice belongs are listed with the Invoice Number, Date, Type, Aux. Code and Total information. The invoices to be transferred are selected. The information of the lines of the selected invoice is directly transferred into the lines of the price diff. invoice.
In the LOGO application, if the purchase invoice to be transferred contains material / service lines for which Period Closing is applied, and if the invoice is approved, the invoice is not transferred into the price difference invoice.
Price Difference Amount Distribution
Total Amount can be entered and distributed to material / service lines in the Price Difference Invoice. This transaction is performed using the Amount Distribution option located in the F9 key or right mouse button menu. The lines of the Amount Distribution window display the Material / Service Codes, Distribution Factor, Price Diff. Amount and Total information.
The fields and functions of the window are:
Material (Class) / Service Code: The material / service code in the lines of the purchase price diff. invoice.
Distribution Factor: The factor to be used to distribute the price differences to the materials / services in the lines. The distribution factor must be a positive integer.
Price Difference Amount: The price difference amount to be distributed to the lines.
The number of lines in the invoice lines is equal to the number of lines in the Amount Distribution window. When the amount to be distributed and the Total is entered, the factors are calculated as follows.
Amount to be distributed = (Total / Distribution Factor Total) * Distribution Factor of the line
The amount information is directly transferred to the invoice when the distribution is completed.
VAT Calculations on Lines: The VAT calculations are based on the VAT rates of the materials and/or services in the lines. After the purchase invoice lines are transferred into the Price Difference Invoices, the VAT Rate in the matched purchase transaction is transferred into the line, and can not be changed by the user.
Relating Received Price Difference Invoice with Purchase Transactions – Bill
If the price difference will be applied to the bottom of a specific Purchase Invoice, all the invoice lines are transferred using Invoice Transfer option located in the right mouse button menu, instead of transferring the lines one by one.
The invoices are matched with the purchase transactions by invoice date, entering the Start and End Dates.
The purchase invoices of the AR/AP to which the purchase price diff. invoice belongs are listed with the Invoice Number, Date, Type, Aux. Code and Total information. The invoices to be transferred are selected. The information of the lines of the selected invoice is directly transferred into the lines of the purchase price diff. invoice.
If the purchase invoice to be transferred contains material / service lines for which Period Closing is applied, and if the invoice is approved, the invoice is not transferred into the Price Difference Invoice.
Discounts and Surcharges applied to Received Price Difference Invoice Bottom
The surcharges and discounts to be applied to the price difference slip in the line are recorded right under the relevant line by selecting Discount or Surcharge as the line type.
The tracking methods these discount and surcharges applied to the invoice bottom can be defined by "Invoice Parameters" option located in the right mouse button menu of the invoice.
When "Cost of Material" is selected on this window, the surcharge and discount amounts of the material on the slip line is calculated using the weighted average method and these values are reflected to the invoices that these lines are belong to.
When "Post to G/L Account" is selected, surcharge / discount amounts of material lines are not calculated and affect price difference invoice line amounts. These discounts and surcharges are tracked in specified G/L accounts.
On price difference invoice when Material Amounts parameter is selected as "Increase", discounts are posted to G/L as credit; when surcharges are posted as debit. When Material Amounts parameter is selected as "Decrease", discounts are posted to G/L as debit; when surcharges are posted as credit.