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How to configure Automatic Accept Deviation on Purchase Order Acknowledgement

Dear experts,

I am a bit confused with how to configure Automatic Accept Deviation on Purchase Order Acknowledgement fine-tune.

Can someone please provide some example scenarios?

Best Regards,

Fred

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5 Answers

  • Feb 21, 2017 at 03:27 PM

    Hi Fred,

    I have checked this functionality and please find the details.

    If you go to Activity - Automatic Accept Deviation on Purchase Order Acknowledgement.

    You will find two check boxes.

    1. Accept all 2. Accept new sub-limit item

    1. You can select Accept all if you want that the deviations on purchase order are automatically carried over to purchase order. This will disable all the variance settings options available except Accept new sub-limit.

    2. You can select Accept new sub-limit item if you want that the deviations in purchase order acknowledgment containing new sub-limit item should be carried over to purchase order automatically.

    For Example:

    I have set the Price Variance as below;

    Variance Higher Than (Percentage) - 5% OR Variance Higher Than (Net Price) 50 EUR

    Variance Lower Than (Percentage) - 2% OR Variance Lower Than (Net Price) 25 EUR

    I set Quantity Variance - Variance Higher than (Percentage) 2 %

    I create a new PO for 10 ea & Price for each unit is 1 EUR. During the PO acknowledgement, If you change the Acknowledged Price to 11 EUR from 1 EUR. System will automatically creates an Acknowledgement and updates PO with acknowledged price.

    Best Regards,
    Arun

    Please mark this thread as answered, if it is helpful.

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    • Dear Arun,

      ->I create a new PO for 10 ea & Price for each unit is 1 EUR. During the PO acknowledgement, If you change the Acknowledged Price to 11 EUR from 1 EUR. System will automatically creates an Acknowledgement and updates PO with acknowledged price.

      I tried your scenario. But the PO is not updated automatically. Instead, the PO Acknowledgment Status becomes Deviation in Acknowledgment.

      Best Regards,

      Fred

  • Feb 22, 2017 at 03:36 AM

    Dear Arun,

    Thanks for your explanation.

    ->I create a new PO for 10 ea & Price for each unit is 1 EUR. During the PO acknowledgement, If you change the Acknowledged Price to 11 EUR from 1 EUR.

    I am still confused why the variance is not considered as Deviation and instead updates the Purchase Order.

    Those Variance Higher Than and Lower Than parameters are quite confusing for me.

    Best Regards,

    Fred

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  • Feb 22, 2017 at 06:50 AM

    Dear Arun,

    What do you mean by "If the deviations are with in the tolerances"?

    ->I create a new PO for 10 ea & Price for each unit is 1 EUR. During the PO acknowledgement, If you change the Acknowledged Price to 11 EUR from 1 EUR. System will automatically creates an Acknowledgement and updates PO with acknowledged price.

    Is your example scenario within the tolerances?

    Best Regards,

    Fred

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  • Feb 22, 2017 at 06:42 AM

    Hi Fred,

    If the deviations are with in the tolerances, system will automatically accept these deviations and updates the PO document directly.

    In case, if the deviations are not within the tolerance, then manual action is required.

    Best Regards,
    Arun

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    • Dear Arun,

      What do you mean by "If the deviations are with in the tolerances"?

      ->I create a new PO for 10 ea & Price for each unit is 1 EUR. During the PO acknowledgement, If you change the Acknowledged Price to 11 EUR from 1 EUR. System will automatically creates an Acknowledgement and updates PO with acknowledged price.

      Is your example scenario within the tolerances?

      Best Regards,

      Fred

  • Feb 23, 2017 at 08:44 AM

    Hi Fred,

    If you set the tolerance limit to 20 EUR and if the deviations are within the value limit say 15EUR, it will automatically accept the deviations and update PO.

    Best Regards,
    Arun

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