How to Address an Item Unit Price Exception Type (Legacy)

^{Last Updated: May 22, 2024}

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Table of Contents

1. Item Unit Price Exception Type
2. Checking the Bill Item's Unit Price
3. Comparing Bill Item to Order Item
4. Updating an Order Item's Price to Match the Bill
5. Excluding a Unit Price Exception
6. Leaving a Unit Price Exception
7. Disputing a Unit Price Exception

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Bill exceptions appear on bills as part of the 3-way match process to ensure the bill matches with the order and receipt to make sure you aren't overpaying for items you've ordered. The Item Unit Price Exception Type appears when a bill item’s unit price is greater than the linked order item’s unit price. There are several ways to address the issue depending on the scenario. 

Item Unit Price Exception Type

The Item Unit Price exception type occurs when the bill item's unit price is greater than the order item's unit price. 

When a bill item is linked to an order item, the unit prices are compared to each other. Depending on the variance between the prices, the following scenarios will occur:

• If the unit price on the bill is greater than the unit price on the order, a unit price exception is thrown.
• If the unit price on the bill is less than or equal to the unit price on the order, there is no unit price exception. 

Some reasons why the bill item's unit price might be different from the order item's unit price are: 

• The unit price in your price book is out of date
• The item was ordered off-catalog and the unit price was entered incorrectly
• The vendor is using their normal unit price instead of your agreed upon discounted unit price 

Checking the Bill Item's Unit Price

Sometimes, the bill item's unit price can be transcribed incorrectly from the bill. First, check to make sure the bill item's unit price matches the unit price that appears on the attachment. If the unit prices match, you should compare the bill item to the order item. If the transcription of the unit price is inaccurate, follow the steps below to update it. 

• Click on the Edit Bill button in the upper right corner of the bill tab. 

 

• The Edit Bill modal will open. 
• Scroll down on the right side of the bill modal until you reach the Line Items section. 

• Find the Line Item with the incorrect unit price. 
• Update the Line Item with the unit price that appears on the attachment. 

• Click on the Save button in the lower right hand corner. 

Scroll down to the line item on the bill to see if the unit price exception has been resolved. 

• If the Exception badge is gone, the bill item's unit price is now less than or equal to the order item's unit price and no other exceptions exist. 
• If the Exception badge is still present, click on the row to view the types of exceptions the item has.
  • If a Unit Price exception type is still present, follow the steps for comparing a bill item to the order item. 
  • If Quantity or Total exception type is present, follow the steps in the linked articles to address them.

Comparing Bill Item to Order Item

It's important to view the price variance between the bill item and the order item to ensure you don't overpay the vendor. To view the unit price exception:

• Click on the bill line item

• The Bill Line Item detail drawer will appear with the order item's unit price highlighted in red

• Under the Bill Item section, check the unit price of the bill item

• Under the Order Item section, check the unit price of the PO item

 

• Calculate the variance between the two, this is the unit price variance

After viewing the variance in unit price, ask yourself the following questions to determine if the bill item's unit price is incorrect: 

• Do I have an agreed upon formulary price for this item with this vendor? 
  • If so, is the unit price on the bill the agreed upon price? 
• Was the item ordered off-catalog on the order? 
  • If so, was the price entered correctly on the order? 

If you determine the unit price on the order is incorrect and the unit price on the bill is correct, you should update the order item's price to match the bill.

If you determine the unit price on the bill is incorrect or are unsure, then determine how you want to proceed based on the variance of the unit price. The variance will always be visible on the Unfavorable Item Variance Report for when you want to bring up the issue with the vendor. 

• If the variance is small enough that you don't mind paying the bill and disputing the overcharge later, determine how you want to proceed based on the importance of obtaining a 2-way or 3-way match in your organization. 
  • If a 2-way or 3-way match is important, follow the instructions for excluding a unit price exception.
  • If a 2-way or 3-way match is not important and you want to keep visibility into the exception, follow the instructions for leaving a unit price exception.
•  If the variance is large enough that you want to withhold payment from the vendor and dispute the bill, follow the instructions for disputing a unit price exception.

Updating an Order Item's Price to Match the Bill

If you determine that the unit price on the bill is correct and the unit price on the order was incorrect, you can update the unit price on the order to match the bill. 

To update the order item's price: 

• Click on the bill line item

• The bill line item detail drawer will appear

• Click on the Update PO Price button

• The associated order item's unit price is updated to the unit price of the bill item

Clicking the Update PO Price button will only update the associated order with the bill. It will not: 

• Update the unit price for the item in the price book
• Update the unit price for the item on other bills it appears on
• Update the unit price for the item on other orders it appears on

Excluding a Unit Price Exception

Excluding the item removes it from the 3-way matching algorithm which removes it from having any exceptions. This option should only be used if you are fine with paying the bill and potentially talking to the vendor about the issue later. The variance will be visible on the Unfavorable Item Variance Report for when you want to bring up the issue with the vendor.

If there are no other exceptions on the bill, the bill should be moved into the approved bill stage. This option should only be used if:

• You are fine with paying the variance in pricing now and bringing it up with the vendor at a later time
• Need to get a 2-way or 3-way match on the bill
• Want the variance to appear on the Unfavorable Item Variance Report

To exclude the item:

• Click the Exclude Item button in the item detail drawer. 

 

Leaving a Unit Price Exception

Leaving the exception keeps the exception tag visible on the bill. This option should only be used if you are fine with paying the bill and potentially talking to the vendor about the issue later. The variance will be visible on the Unfavorable Item Variance Report for when you want to bring up the issue with the vendor. If there are no other exceptions on the bill, it should be moved into the approved bill stage. We recommend leaving a comment on the bill about why an exception is still present if choosing this method. This option should only be used if:

• You are fine with paying the variance in pricing now and bringing it up with the vendor at a later time
• Don't need to get a 2-way or 3-way match on the bill
• Want to keep visibility into the exception
• Want the variance to appear on the Unfavorable Item Variance Report

Disputing a Unit Price Exception

Disputing the item should be done if the variance is above your accepted limit. The bill should be moved to the blocked bill stage while talking with the vendor. We recommend leaving a comment on the bill about why the bill is in the blocked stage if choosing this method. 

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