PQV

PQV is a key reconciliation metric in Amazon’s Vendor Central finance and operations processes. It highlights inconsistencies between what vendors claim to have shipped (and billed) and what Amazon’s systems record as received through inbound check-in scans.

Such mismatches can lead to payment holds, short pays, or disputes, as Amazon only pays for items physically received and confirmed in its inventory.

How It Works:

1. PO Issued: Amazon sends a Purchase Order (PO) specifying the ordered quantity.
2. Vendor Ships: The vendor ships and invoices the quantity sent.
3. Amazon Receives: At the fulfilment centre, each unit is scanned and verified.
4. Variation Identified: If the invoiced quantity ≠ received quantity, Amazon flags a Product Quantity Variation (PQV).
   • Shortage PQV: Fewer units received than invoiced.
   • Overage PQV: More units received than invoiced.

Example:

• PO ordered quantity: 500 units
• Vendor invoice: 500 units
• Amazon FC received: 480 units
   → PQV = –20 units (Shortage)

Common Causes of PQV:

• Shipping shortages: Vendor shipped fewer units than billed.
• Receiving delays or errors: Some units still in transit or unscanned.
• Damaged or lost goods: Items lost during transport or rejected at delivery.
• Incorrect ASN (Advanced Shipment Notification): Mismatch between declared and actual shipment contents.
• Labelling or packaging issues: Units not properly identified upon receipt.

Impact on Vendors:

• Payment delays or short pays: Amazon pays only for received quantities.
• Chargebacks: Repeated PQV issues may trigger operational penalties.
• Dispute workload: Vendors must open cases to reconcile discrepancies.

Impact on Amazon:

• Inventory accuracy: Ensures stock levels reflect real inbound receipts.
• Loss prevention: Detects supply chain inefficiencies or vendor fulfilment issues.
• Operational control: Supports audit trails and compliance.

Best Practices to Avoid PQV:

• Use accurate ASN (Advanced Shipment Notification) for every PO.
• Verify pick and pack quantities before shipment.
• Maintain robust carrier tracking to ensure all cartons are delivered.
• Label products clearly and follow Amazon’s packaging & routing requirements.
• Regularly reconcile invoiced vs. received data in Vendor Central reports.

Why It Matters:
PQV affects both financial accuracy and vendor performance. High PQV rates can disrupt cash flow, damage Vendor Scorecard metrics, and lead to long-term trust or operational issues between Amazon and the vendor.

Example:
A vendor invoices Amazon for 1,200 units of face cream but only 1,150 are received at the FC due to a labelling error. Amazon flags a PQV of –50 units, short pays the difference, and the vendor must submit proof of delivery or carrier records to resolve the dispute.

In short:
PQV (Product Quantity Variation) is a mismatch between the quantity invoiced by the vendor and the quantity received by Amazon at its fulfilment centre - leading to reconciliation issues, short payments, or disputes until resolved.