Case 14: Charge Line - Charge Per Unit Outside Tolerance (Approved)

Scenario:

The charge per unit is outside tolerance but has been approved.

Action:

The system accepts the charge per unit and applies the approved charges, processing the transaction accordingly.

Example:

• Purchase Order (PO):

  • Charge Per Unit: $4.50

  • Quantity: 1,000 units

  • Total Charge Amount: $4,500.00

• Invoice Received:

  • Charge Per Unit: $5.00 (outside tolerance of 11.11%, approved)

  • Quantity: 1,000 units

  • Total Charge Amount: $5,000.00

• Tolerance Levels:

  • Charge Per Unit Tolerance: ±5%

Since the charge per unit ($5.00) is outside the acceptable tolerance range of 5% but has been approved, the system will:

1. Accept the Approved Charge Per Unit: The system accepts the invoiced charge per unit of $5.00 as it has been approved despite exceeding the tolerance limit.

2. Process the Transaction: The system processes the invoice using the approved charge per unit and the quantity:

   • Total Charge Amount = Quantity × Approved Charge Per Unit

   • Total Charge Amount = 1,000 units × $5.00 = $5,000.00

3. Finalize the Invoice: The system processes the transaction with the approved charges, reflecting the total amount of $5,000.00.

This approach ensures that the system can accommodate approved variances in charges, allowing flexibility while maintaining accurate financial records.