Could someone explain how the tolerance is calculated on a Posting Proposal and how it is being finally posted? Does it consider both % and Amount defined in the company/supplier level?
Reason for the clarification: A customer requested a lobby to reflect the number of PO matched invoices that have the PPV within tolerance and the PO matched invoices that have the PPV outside tolerance.
IFS uses the lowest of the percentage / amount on the supplier. If there is nothing on the supplier but supplier is set to “allow tolerance”, then it looks at the company setting and again, uses the lowest of percentage or amount.
If the supplier is not set to “Allow Tolerance” then no tolerance will apply
Hi
Could you kindly let me know how the percentage is calculated from the values in the Posting proposal? For example, if the 2% is defined in the company/Supplier level, what will the 2% be calculated from?
It will be 2% of the total net value of the invoice comparing to the PO receipts.
Hi
Tolerance can be calculated as a % or as a numeric value. If values are entered in both fields, the values giving the smallest tolerance will be used by the system. This basic date is defined in Supplier window>Invoice Tab> PO matching sub tab, under the ‘Tolerance Parameters’ section. Tolerance check will not be enabled when the supplier is enabled for Self-Billings.
Tolerance check compares Invoiced amount and Purchase order amount when creating Postings for Tolerance checks.
If a Tolerance amount is has entered, the maximum amount of tolerance accepted for each matched line, i.e., the invoiced amount compared to the purchase order amount will be checked. If no tolerance amount or percentage is specified for the supplier, the value(s), if any, specified on the Company/Invoice/PO Matching tab are used.
If a Tolerance percentage is has entered, the maximum percentage of tolerance accepted for each matched line, i.e., the invoiced amount compared to the purchase order amount will be checked. If no tolerance amount or percentage is specified for the supplier, the value(s), if any, specified on the Company/Invoice tab are used.
Now with regard to how this work, when the Invoiced amount is higher than the PO value, M19 posting line will be created, whereas in the opposite scenario M20 posting line will be created.
Hope this helps.
Kind regards,
Shanuka.
A further question, is the tolerance % or amount +/-? To clarify, if my tolerance is set at 1%, does this mean any variance between -1% and + 1% will be within tolerance?
Thanks,
Mark
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