If an invoice only displays very small variances, they are accepted by the system. A small variance will fall within set tolerance limits. These tolerance limits can be defined by your system administrator.

Tolerances are used not only to define limits for variances but also to determine the amount above which an invoice should be blocked. You can set different limits depending on whether the invoice item refers to a purchase order.

You can set a maximum of four limits for each tolerance (see the following example).

The above table displays the tolerance limits for price variances for an estimated price. If the purchasing department flags the order price as an estimated price in the purchase order, the tolerance limits are checked at goods receipt. Both a percentage and an absolute variance are set for the upper and lower limits. If one of these limits is exceeded, you receive a warning message. If one of the upper limits is exceeded, the invoice is blocked for payment when it is posted.

If you generally do not want to block an invoice item on the basis of a particular variance, you must set all the tolerance limits to Do not check.

If you want to block an invoice item on the basis of a particular variance in all cases, set the upper limits to zero.