Invoice Tolerances

Invoice tolerances determine whether matching holds are placed on invoices for variances between invoices and the documents you match them to, such as purchase orders.

When you run the invoice validation process for a matched invoice, the process checks that matching occurs within the defined tolerances. For example, if the billed amount of an item exceeds a tolerance, a hold is placed on the invoice. You can't pay the invoice until the hold is released.

You can define tolerances based on quantity or amount. For each type of tolerance, you can specify percentages or amounts. Once you define the tolerances, assign them to a supplier site.

Note: If you specify a percentage tolerance of zero, variance isn't allowed. If you want a low tolerance, specify a small percentage. If an active tolerance doesn't have a value, then infinite variance is allowed.

Quantity-Based Tolerances

Quantity-based tolerances apply to invoices with a match basis of Quantity.

This table describes each quantity-based tolerance.

Tolerance	Description
Ordered Percentage	The percentage difference more than the ordered quantity on a purchase order schedule line that you allow suppliers to invoice. Validation checks the billed quantity against the ordered quantity without considering price.
Maximum Ordered	The quantity difference more than the ordered quantity on a purchase order schedule line that you allow suppliers to invoice. Validation checks the billed quantity against the ordered quantity without considering price. You can use this tolerance if most of your purchase orders have the same relative value.
Received Percentage	The percentage difference more than the received quantity on a purchase order schedule line that you allow suppliers to invoice. Validation checks the billed quantity against the received quantity without considering price.
Maximum Received	The quantity difference more than the received quantity on a purchase order schedule line that you allow suppliers to invoice. Validation checks the billed quantity against the received quantity without considering price. You can use this tolerance if most of your purchase orders have the same relative value.
Price Percentage	The percentage difference more than the unit price on a purchase order schedule line that you allow suppliers to invoice.
Conversion Rate Amount	The variance that you allow between an invoice amount and the amount of a purchase order schedule. Validation compares the ledger currency amounts, using the invoice and purchase order conversion rates, respectively. You can use this tolerance if you create foreign currency invoices.
Schedule Amount	The variance that you allow between all invoice amounts in the entered currency and the purchase order schedule amount.
Total Amount	The total variance that you allow for both the Conversion Rate Amount and Schedule Amount tolerances combined. You can use this tolerance if you create foreign currency invoices.
Consumed Percentage	The percentage difference more than the consumed quantity on a consumption advice that you allow suppliers to invoice. Validation checks the billed quantity against the consumed quantity without considering price.
Maximum Consumed	The quantity difference more than the consumed quantity on a consumption advice that you allow suppliers to invoice. Validation checks the billed quantity against the consumed quantity without considering price.

Amount-Based Tolerances

Amount-based tolerances apply to invoices that have a match basis of Amount.

This table describes each amount-based tolerance.

Tolerance	Description
Ordered Percentage	The percentage difference more than the ordered amount on a purchase order schedule line that you allow suppliers to invoice. Validation checks the billed amount against the ordered amount.
Maximum Ordered	The amount difference more than the ordered amount on a purchase order schedule line that you allow suppliers to invoice. Validation checks the billed amount against the ordered amount.
Received Percentage	The percentage difference more than the received amount on a purchase order schedule line that you allow suppliers to invoice. Validation checks the billed amount against the received amount.
Maximum Received	The amount difference more than the received amount on a purchase order schedule line that you allow suppliers to invoice. Validation checks the billed amount against the received amount.
Conversion Rate Amount	The variance that you allow between the invoice amount and the amount on a purchase order schedule. Validation compares the ledger currency amounts, using the invoice and purchase order conversion rates, respectively. You can use this tolerance if you create foreign currency invoices.
Total Amount	The total variance that you allow for both the Conversion Rate Amount and Schedule Amount tolerances combined. You can use this tolerance if you create foreign currency invoices.