Approval Tolerances (Oracle Inventory Help)


	Previous	Next		Contents	Index	Glossary	Library

Approval Tolerances

Oracle Inventory supports two types of physical inventory approval tolerances. For each type, you can specify a positive and a negative limit. When a particular physical inventory tag count entry results in an adjustment that exceeds any one of these limits, you have a physical inventory adjustment that exceeds approval tolerances. Based on the approval option you chose when you defined your physical inventory, this adjustment is or is not held for approval.

If you decide that approval is required for adjustments out of tolerance you must enter at least one positive or negative value for one type of approval tolerance.

The quantity variance tolerance is a user-defined limit for the difference between the system-tracked on-hand quantity and the actual tag count quantity. You express positive and negative quantity variance tolerances as percentages of the system on-hand quantity. You enter these percentages when defining your physical inventory.

The adjustment value tolerance is a user-defined limit for the total value of a physical inventory adjustment:

adj value = (system on-hand qty - actual count qty) x current cost, where:

Current cost is the cost at inventory snapshot.

You express positive and negative adjustment value tolerances as amounts in your functional currency. You enter these tolerances when defining your physical inventory.

Approval Tolerances

See Also