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Former Member

tolerance varience

hi all

in img in purchase requisition setting- tolerance setting there i find ""set tolerance limit for price variance".where does it effect and what is the use

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2 Answers

  • Posted on Jan 30, 2008 at 08:55 AM

    Tolerance variance is set mainly because while doing invoice verification it will check if it is within the limit it will allow )or) otherwise the document will be parked.

    Similarly while raising the GR also it plays a major role

    G.Ganesh Kumar

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 30, 2008 at 09:01 AM

    Hi

    Generaly "Set Tolerance Limits for Price Variance" is set for PO

    If we maintain this while processing a purchase order, the system checks whether the effective price of a PO item shows variances compared with the valuation price stored in the material master record.

    Variances are allowed within the framework of tolerance limits. If a variance exceeds a tolerance limit, the system issues a warning or error message as per setting.

    In the SAP System, the types of variance are represented by the tolerance keys. For each tolerance key, you can define percentage and value-dependent upper and lower limits per company code.

    e.g. suppose in MM price maintained is 10 RS and tolerance is 10% for upper and lower limit.If U are entering Po price for item as 15rs ( greater than tolerence limit of 11RS) then system will issue a warning or error message as per setting u have maintained

    o PE Price variance, Purchasing

    - Tolerance limit for system message no. 207. This message appears

    if the specified effective price exceeds the predefined

    tolerances when compared with the material price.

    Vishal...

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