Purchase order tolerance settings / Additional purchase order tolerance

Setting to configure Purchase Order Tolerances

Go to Settings → General Settings → Document Types → More Settings → Purchase Order Section → PO Tolerance Setting

How It Works

When enabled, this setting allows you to define tolerances for Quantity and/or Unit Price. These tolerances can be set either as a percentage or as a fixed value. This means that an invoice can deviate from the purchase order (PO) within the specified tolerance range without being flagged as a mismatch, providing flexibility while ensuring seamless processing.

NOTE: Tolerances work in both directions; that is, the invoice value may be either higher or lower than the PO value within the allowed range.

Setting It Up

1. Enable the Setting:

   • Turn on the PO Tolerance Setting using the toggle button.

2. Configure Tolerances:

   • Four fields will appear:

     • One field for the Quantity Tolerance Amount.

     • One field for the Unit Price Tolerance Amount.

   • Behind each field, there is a dropdown menu where you can select the tolerance type:

     • Percent: Indicates a percentage tolerance.

     • Value: Indicates a fixed amount by which the value can differ.

Example Scenario:

• Suppose the Unit Price Tolerance is set to 5%.

• The purchase order includes two lines:

  • Line 1: Unit Price = $5.00

  • Line 2: Unit Price = $2.00

• On the invoice:

  • Line 1: The unit price is adjusted to $4.80 (within the 5% tolerance).

  • Line 2: The unit price is adjusted to $2.20 (outside the 5% tolerance).

• Outcome:

  • Line 1 is not flagged as a mismatch because $4.80 is within 5% of $5.00.

  • Line 2 is flagged as a mismatch because $2.20 exceeds the allowed 5% deviation from $2.00. The user is now required to take action to resolve the mismatch before the invoice can be processed further.

Setting to configure Additional Purchase Order Tolerance Settings

Go to Settings → General Settings → Document Types → More Settings → Purchase Order Section → Additional PO Tolerance Setting

How It Works

When enabled, this setting allows you to define tolerances for Freight, Charges, and/or Tax. These tolerances can be set either as a percentage or as a fixed value, enabling invoices to vary slightly from the PO values without being flagged as mismatches. This provides additional flexibility and ensures that minor differences do not interrupt the workflow.

NOTE: Just like the standard tolerance settings, these tolerances apply in both directions—allowing for increases or decreases within the set limits.

Setting It Up

1. Enable the Setting:

   • Turn on the Additional PO Tolerance Setting using the toggle button.

2. Configure Tolerances:

   • Six fields will become visible:

     • One field each for the tolerance amounts for Freight, Charges, and Tax.

   • Each field has an accompanying dropdown menu where you can choose the tolerance type:

     • Percent: The tolerance is defined as a percentage.

     • Value: The tolerance is defined as a fixed amount.