AP: Tolerance Group under payment transactions

[former_member857785]

Good Morning SAP Folks-

What is the purpose of the tolerance group under payment transactions under the Vendor Master?

Thank you!

[Former Member · Accepted solution]

Hi,

Tolerances are to take care of the differences in payment and residual items which can occur during a payment settlement. Tolerance groups are the difference sets of tolerances to be used in the organisation.

Each vendor should be assigned a tolerance group. The tolerance limits defined for a tolerance group will determine whether an over or underpayment may be processed without being rejected or requiring further authorisation.

[Former Member]

Hi

Incase of difference in vendor payments(overpayment / underpayment), tolerance group assigned in the vendor master determines whether the difference has to be allowed or not.

Assignment of tolerance group in vendor master is optional. General tolarance for Vendors is set in OBA3 transaction in configuration.

Regards

Rengaraj