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Supplier quote comparison
Compare two supplier offers on the same purchase quantity and cost basis.
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Purchase Price Variance (PPV) Calculator
Compare a purchase unit price with standard unit cost using the actual quantity received, with an explicit variance sign.
Purchase price variance calculator
Compare a purchase unit price with standard unit cost using the actual quantity received, with an explicit variance sign.
YOUR RESULT LIVE CALCULATION
Purchase price cost variance
$500PPV
UNFAVORABLE- Unit price variance
- $0.5 / unit
- Unit price variance vs. standard
- 4.17%
- Standard cost at received quantity
- $12,000
- Purchase cost at received quantity
- $12,500
Positive = unfavorable; negative = favorable. Both extensions use actual quantity received.
BEHIND THE NUMBER
How the calculation works
Positive variance is unfavorable: the purchase price is above standard. Negative variance is favorable. Both the actual-price extension and the standard-cost extension use the same actual quantity, isolating price rather than quantity usage. Percentage variance compares unit price difference with standard unit cost, which must be positive.
PPV = (purchase unit price - standard unit cost) x actual quantity received
When this calculation helps
A price variance compares actual and standard unit prices for a consistent purchased quantity. It is useful for separating unit-price movement from changes in the amount bought.
Check the interpretation
Keep the standard version, currency, and treatment of freight consistent. A favorable purchase-price variance can coexist with higher transport, defects, or extra stock. It is not a complete measure of supplier economics or an automatic accounting posting.
Use the same currency, unit of measure, and cost boundary. This does not calculate invoice-versus-PO variance, exchange-rate effects, quantity usage variance, or accounting journal entries.
Oracle purchase price variance reportGood to know
Why is a positive value unfavorable?
This tool uses actual purchase price minus standard cost. A higher purchase price produces a positive cost variance. Some reports reverse the sign; confirm the convention before combining data.
Is PPV the same as invoice price variance?
No. PPV here compares purchase price to standard cost on received quantity. Invoice price variance compares the invoiced price to the purchase order price.