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Free purchase price variance and three-way match calculator

Purchase price variance is the invoice unit price minus the PO unit price, times the quantity invoiced. Enter each line’s PO, received and invoiced figures, set your price and quantity tolerances, and the calculator shows the variance per line, which lines fail the three-way match, and how much of the invoice to hold. It runs in your browser; nothing is uploaded.

Updated November 13, 2026 · Aequo editorial team

Check an invoice against its PO

Tolerances

Price tolerance %

Price cap per line

Quantity tolerance %

A price increase must be inside both the percentage and the cap. Set the cap to 0 to use the percentage only. The quantity tolerance is how much may be billed above what was received, as a percent of the received quantity.

Invoice lines

Sample lines are filled in. Change them, or clear them and type your own invoice.

Purchase order, receipt and invoice figures for each line
Item	PO qty	PO unit price	Received qty	Invoiced qty	Invoice unit price	Remove

Result

Invoice total: 5,255.10
Net price variance: +79.10
Lines outside tolerance: 2 of 5
Value of lines to hold: 3,185.00

Steel brackets, 4 in
Clears
Invoice 680.00 · Price variance 0.00
Hex bolts M8, box of 100
Clears
Invoice 912.50 · Price variance +12.50 (+1.39%)
Price is above the PO but inside tolerance.
Shelving units
Exception: Not received
Invoice 2,450.00 · Price variance 0.00 · Not received 490.00
2 billed but not received.
Safety gloves, pair
Exception: Price variance
Invoice 735.00 · Price variance +105.00 (+16.67%)
Price is 16.67% above the PO, over the 2% tolerance.
Pallet wrap, roll
Clears, favorable price
Invoice 477.60 · Price variance -38.40 (-7.44%)
Price is below the PO: a favorable variance. Check the vendor did not drop an item.

The formulas

Four numbers decide a three-way match: the price variance, the price variance as a percentage, the quantity billed but not received, and any quantity billed above the order.

Examples use the sample lines in the calculator.
Measure	Formula	Example
Purchase price variance (PPV)	(Invoice unit price − PO unit price) × invoiced quantity	(18.25 − 18.00) × 50 = +12.50 unfavorable
Price variance %	(Invoice unit price − PO unit price) ÷ PO unit price × 100	0.25 ÷ 18.00 × 100 = 1.39%
Billed but not received	(Invoiced quantity − received quantity) × invoice unit price	(10 − 8) × 245.00 = 490.00 to hold
Billed above the order	Invoiced quantity − PO quantity	12 invoiced on a PO for 10 = 2 over

Worked example

The sample invoice has five lines. Two clear, one clears with a favorable price, and two are exceptions.

Steel brackets match the PO exactly and clear.
Hex bolts are billed at 18.25 against a PO price of 18.00: a 1.39% increase and 12.50 of price variance, inside a 2% tolerance with a 50.00 cap. They clear.
Shelving units are billed for 10 but only 8 were received. The line is held: 490.00 of it is for the two missing units, which need a receipt when they arrive or a credit from the vendor.
Safety gloves are billed at 2.45 against 2.10: 16.67% over the PO and 105.00 of price variance. That is outside tolerance, so the line goes to the buyer.
Pallet wrap is billed below the PO price, a favorable variance of 38.40, and clears.

Setting tolerances

Combine a percentage with an amount cap, keep the quantity tolerance tight for goods, and set tighter limits for suppliers that cause problems.

A percentage alone lets a large line through: 2% on a 50,000.00 line is 1,000.00. An amount cap alone stops every rounding difference on cheap items. Using both means a difference has to be small in percentage and in money to clear. Review the limits when the exception rate is high: if most exceptions are tiny, the tolerance is too tight; if overcharges reach payment, it is too loose.

For services there is often no goods receipt. Most teams use a two-way match plus a sign-off from the person who received the service; see purchase order vs invoice.

Aequo AP

Run this match on every PO invoice as it arrives

This page checks one invoice you type in. Aequo AP reads each invoice, finds its purchase order and receipts, compares every line against tolerances you set per supplier, recognizes legitimate partial invoices, and sends only the lines outside tolerance to an exception queue with the reason attached. Three-way matching is included on every plan.

Accounting sync is live with QuickBooks Online, Xero, FreshBooks, Zoho Books and Microsoft Dynamics 365 Business Central. Unlimited users on every public plan.

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Frequently asked questions

What is purchase price variance?

Purchase price variance (PPV) is the difference between what you agreed to pay for an item and what the vendor charged, multiplied by the quantity bought. In accounts payable it is the PO unit price compared with the invoice unit price. A positive PPV means you were charged more than agreed (unfavorable); a negative one means you were charged less (favorable).

What is the purchase price variance formula?

PPV = (actual unit price − standard or PO unit price) × actual quantity. For an invoice, the actual price is the invoice unit price and the quantity is the quantity invoiced. Cost accountants sometimes use a standard cost instead of the PO price; the formula is the same.

What is a normal three-way match tolerance?

There is no universal standard. Many teams allow a small percentage, such as 1% to 5% on price, together with an amount cap per line, so a rounding difference clears but a large overcharge on an expensive line does not. Quantity tolerances are often 0% for goods, because paying for items that never arrived is the error three-way matching exists to stop.

Should a favorable price variance be an exception?

Usually not. A price below the PO does not cost you money, so most teams let it clear. It is still worth a glance: a much lower price can mean the vendor shipped a different item or left something off the invoice.

What if less was received than invoiced?

Hold the part of the invoice that was not received. Either the goods are still coming and the receipt has not been recorded yet, or the vendor billed for more than they delivered. Ask the receiver first, then the vendor for a corrected invoice or a credit.

Is my data sent anywhere?

No. The calculator runs in your browser and only uses the figures you type. Nothing is uploaded, stored or emailed, and there is no sign-up.