How Invoice Price Corrections and Tolerances Are Calculated

For invoices with price corrections, the invoice validation process uses a weighted average unit price to check whether invoice prices are within allowed tolerances. The basis for the weighted average unit price is the invoice being corrected and the price corrections for that invoice.

How the Weighted Average Unit Price Is Calculated

The calculation of the weighted average unit price follows this formula: ((quantity * unit price) + (quantity * unit price)) ... / invoiced quantity of the invoice being corrected.

For example, this table shows quantities and amounts for an invoice matched to a purchase order and a price correction for that invoice.

Transaction	Quantity	Unit Price	Quantity * Unit Price
Base Matched Invoice	2	350.00 USD	700.00 USD
Price Correction	2	5.00 USD	10.00 USD

The weighted average unit price in this example is 355.00 USD because ((2 * 350.00) + (2 * 5.00)) / 2 = (700.00 + 10) / 2 = 355.00.