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Former Member

Invoice for service PO within Overall limit yet bocked due to Price variance

Hi All,

I have raised a service PO (item category = D, but not using service activity) and set limits. They have been set as

Overall Limit 800 EUR, Expected Value 600 EUR

Invoice of 648 EUR has been blocked due to price variance. Tolerance key LA has been defined as Absolute -> Check Limit -> 0 and Percentage -> Do not check -> 0.00

I expected Invoice to be posted as it is within the Overall Limit of 800 EUR, but seems like system is validating against Expected value. How do I change the behaviour so that system validates against Expected value. What would happen in case I select the 'No Limit' checkbox on the limits tab in the PO. Will I be able to post Invoice greater than 600 EUR or is system going to block the invoice

Thanks

Venkat

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2 Answers

  • Best Answer
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    Former Member
    Jan 26, 2017 at 10:48 AM

    I have made some observation and I think I know how the system works. If the PO is GR based, then it allows Service entry sheet to be created upto the overall limit and invoice is matched with the service entry sheet. But if the PO is not GR based, then invoicing ignores the overall limit and blocks if the amount exceeds expected value

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    Former Member
    Jan 24, 2017 at 12:54 PM

    Hi,

    For Tolerance Key LA ,

    Case 1) If you don't need variance, then select Do not check button in "Absolute" and "Percentage".

    Case 2) If you need variance, then select Check limit button in "Absolute" and/or "Percentage"

    And fill Val. and/or Tolerance limit % , as per your requirement.

    Note: Variance is always on Expected value, not on Overall limit.

    Regards,

    Maheshwar.

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    • Former Member

      Thanks Maheshwar

      Could you highlight what is the significance of Overall Limit field and No Limit checkbox

      As per the field help the system checks the services entered against the maximum value. Is this not checked in Invoice verification

      Regds

      Venkat