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

Scenario:

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

Action:

The system processes the approved charge per unit, applying it to the transaction.

Example:

• Purchase Order (PO):

  • Header Charge Per Unit: $2.50

  • Quantity: 2,000 units

  • Total Header Charge Amount: $5,000.00

• Invoice Received:

  • Header Charge Per Unit: $3.00 (outside tolerance of 20%, approved)

  • Quantity: 2,000 units

  • Total Header Charge Amount: $6,000.00

• Tolerance Levels:

  • Header Charge Per Unit Tolerance: ±5%

Since the header charge per unit ($3.00) exceeds the acceptable tolerance range of 5% but has been approved, the system will:

1. Accept the Approved Header Charge Per Unit: The system accepts the invoiced header charge per unit of $3.00 as it has been approved despite exceeding the tolerance limit.

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

   • Total Header Charge Amount = Quantity × Approved Header Charge Per Unit

   • Total Header Charge Amount = 2,000 units × $3.00 = $6,000.00

3. Finalize the Invoice: The system processes the transaction with the approved charges, reflecting the total amount of $6,000.00.

This approach allows the system to accommodate approved variances in header charges, ensuring that the transaction is processed according to the approval while maintaining accurate financial records.