## TL;DR

Price mismatches come from real price changes, surcharges, or errors. Check the PO price history and any agreed adjustments (fuel surcharges, price escalations) before assuming an error. Within tolerance, accept; above tolerance, route to procurement with the price history attached. Document the resolution on the invoice.

## Error

```text
Price variance: invoiced $12.50/EA vs PO $11.00/EA (13.6% over)
```

## Steps

1. Pull the PO price history and any change orders.
   Expected: The agreed price evolution.
2. Check for documented surcharges or escalation clauses.
   Expected: Legitimate adjustments.
3. Apply the price tolerance.
   Expected: Fast path for small variances.
4. Above tolerance, route to procurement with history attached.
   Expected: An informed decision.
5. Record the outcome on the invoice and PO.
   Expected: Audit trail.

## When to use

- Invoiced price differs from PO price
- Surcharge disputes
- Price tolerance design

## When not to use

- Quantity mismatches
- Currency differences (normalize first)
- Tax-inclusive vs exclusive pricing (normalize first)

## Compatibility

ERP-agnostic.

## Variant phrasings

### invoice price higher than PO

### unit price variance AP

### price mismatch purchase order

## Root cause

Prices move between order and invoice: surcharges apply, price lists update, vendors misquote. The PO price is the baseline, but legitimate changes exist and need a path.

## Edge cases

- Tax-inclusive vs exclusive presentation mimics price changes; normalize first
- Volume discounts may apply at invoice time; check tier terms
- Foreign-exchange moves are not price changes; separate the effects

## Provenance

Resolved from the public thread: https://vectle.com/posts/pst_moVNYr95QcnhOGzQ5q0YnA