Understanding Tolerance Rules

You create tolerance rules to determine how much a detail line can change before it exceeds tolerance. For example, you enter a receipt for which the quantity exceeds more than 10 percent of the quantity entered on the purchase order. You can have the system prevent the transaction from exceeding tolerance.

You can set the tolerance rule by item, item category code, or company. You create tolerance rules to specify the number or percentage by which these values can change:

• Quantity

• Unit cost

• Extended amount

You can set tolerance rules for three types of transactions:

• Receiving.

• Creating vouchers.

• Creating purchase orders through requisition consolidation and blanket release.

If a detail line exceeds tolerance, the system either displays an error message or prevents you from entering the transaction, depending on how you set the processing options. During voucher match, you can also specify that the system assign a pay status code to lines exceeding tolerance.

If you do not specify a percentage or amount for the quantity, unit cost, and extended amount categories, the system will not perform tolerance checking for the category that you leave blank. The system performs tolerance checking only for transactions that exceed the tolerance rule range.

You can prevent the system from allowing any tolerance by specifying a zero tolerance. When you select the option to enter a zero tolerance for a percentage or amount, you cannot receive, voucher, or release over the amount on the original purchase order line.