Price & Quantity Variance / Tolerance

[former_member184495]

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.

Aditya.

[Former Member]

Hi,

Tolerence limit is 1. Price varience

2. Qty Varience

Price variance:

Lower limit: 1. % ( if you maintain the % , then will check the PO price > Invoice price variances if the value more then the % then it get blocked.

Upper limit: PO price < Invoice price variances if the value more then the % then it get blocked.

Absolute:

Lower value: You give the absolute value. if the diference from PO to IV more then that say PO value 100 & IV value -80..

your absolute value is 10 . then the invoice get blocked.

Upper value: You give the absolute value. if the diference from PO to IV more then that say PO value 100 & IV value 130..

your absolute value is 20 . then the invoice get blocked.

Hope ths willhelp

SAM

[Former Member]

HI,

Please check the what tolerence maintianed against Invoice in customization.

Path: SPRO>>MM>.Invoice>>Tolrences

Regards,

Andra

[Former Member]

HI,

Please check the what tolerence maintianed against Invoice in customization.

Path: SPRO>>MM>.Invoice>>Tolrences

Regards,

Andra