Hi Nick,
As far as i know there's no way to set Physical Inventory difference tolerance limits in the material master. However, you can define upper tolerance limits for difference postings in physical inventory. These tolerance limits can be defined for total and/or each item of physical inventory difference. Then these tolerance groups has to be assigned to specific user names in the system (or "*" to all). This can be accomplished in IMG settings under MM-Inventory Management and Physical Inventory
>Physical Inventory
>Define Tolerances for Physical Inventory Differences. Read the IMG help documentation to gain a deeper understanding of this feature.
Let me know if this helped.
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