How PO Quantity Tolerance Is Validated
You can allow suppliers to generate invoices with amount or quantity greater than the ones defined in the purchase order (PO) within the defined tolerance for the supplier.
These invoice options enable suppliers to create overbilled invoices in the Supplier Portal:
- Allow overbilled quantity for quantity-based matches
- Allow overbilling for amount-based matches
Overbilling simplifies invoice creation in common business scenarios between suppliers and buyers, where extra quantity is delivered to the buyer, causing the amount to changes on one or more lines. Sometimes, extra charges might be incurred for services provided.
After creating and submitting an overbilled invoice, the invoice validation process checks the increased quantity or amount against the set tolerances. The invoice is placed on hold if it exceeds either of the configured tolerances.