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Price Variance

The Price Variance notice means the price on the invoice for a line item differs from the expected price in your item master. This notice is an example of how item master data powers automated validation in Mod AI.

What Triggers It​

This notice appears when Mod AI compares invoice line item prices against the prices stored in your item master. When the invoiced price exceeds a configured variance threshold (either a dollar amount or a percentage), this notice is created.

For example, if your item master lists Widget A at $10.00 per unit and the invoice charges $12.50 per unit, the system flags the 25% price increase for your review.

How to Resolve​

  1. Review the price difference shown in the notice -- the expected price (from your item master) vs the invoiced price.
  2. Choose one of the following options:

Option A: Accept the Variance​

If the price difference is legitimate -- for example, a negotiated price increase, a volume discount, or a contractual adjustment -- accept the variance and proceed with the invoice.

Option B: Dispute with Vendor​

If the price seems incorrect or unauthorized, reject or hold the invoice and contact the vendor to dispute the charge. Do not process the invoice until the discrepancy is resolved.

Option C: Update the Item Master​

If the price has permanently changed (e.g., a new contract rate), update the item price in your ERP system. The updated price will sync to Mod AI and prevent future variance notices for this item at the new price.

tip

Setting appropriate variance thresholds prevents unnecessary alerts while still catching significant price changes. Work with your AP manager to configure thresholds that match your organization's tolerance.

Learn More​

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