Order Shortage & Excess Calculator — Calculate Shipment Variance
Tracking order shortage or excess quantity against buyer PO thresholds helps merchandisers avoid penalties, claim allowed tolerances, and calculate exact revenue realized upon shipment.
What is Order Shortage & Excess?
Tracking order shortage or excess quantity against buyer PO thresholds helps merchandisers avoid penalties, claim allowed tolerances, and calculate exact revenue realized upon shipment.
Formula
Variance Pcs = Actual Packed Pcs − PO Target Pcs | Variance % = (Variance Pcs / PO Target Pcs) × 100
How to Calculate
Subtract buyer target quantity from actual passed packed pieces to find shortage (negative) or excess (positive) quantity.
Example
PO Target = 5,000 pcs, Actual Packed = 4,850 pcs → Shortage = −150 pcs (−3.0% variance).
Frequently Asked Questions
Most buyer purchase orders specify ±3% or ±5% allowed shipment variance without financial penalty.