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May 27, 2010 at 08:17 AM

Price & Quantity Variance / Tolerance


Hi Experts,

read a few threads on IV, but not completely clear as there were many varied answers.

My question:

a) During IV, say my Invoice price is more than PO price (loss to company), in MIRO Invoice would be blocked.

Say my Invoice price is less than PO price (profit for company), in MIRO would the Invoice still be blocked?

b) what is upper and lower limit variance or tolerance?

Also require a brief example on tolerance limits.

Appreciate the explanation with an example, as I understand it better than definitions given.