Glossary

What is Purchase Price Variance (PPV)?

Last updated: July 7, 2026

Purchase price variance is the difference between the expected price of a purchased item and the price actually invoiced, multiplied by quantity. Tracked systematically, PPV converts vague 'costs are up' feelings into a ranked list of exactly which suppliers and SKUs moved.

Purchase Price Variance (PPV) example with real numbers

Expected avocados at $48/case; invoiced at $56 for 30 cases = $240 unfavorable PPV that week from a single SKU at a single location.

How multi-unit restaurant groups manage purchase price variance (ppv)

Vento computes PPV automatically from every invoice and ranks the largest variances across the group, so the weekly supplier call starts with numbers.