Visitor : 1524

Read Comments

Vendor Specific Tolerance

SAP Materials Management


Vendor Specific Tolerance can be activated for the vendor by defining vendor specific tolerance group and assigning it to vendor master. This blog explains the details of vendor specific tolerance.

Basics:

Tolerance are generally defined for handling small variance between PO and vendor Invoices. With tolerance defined ,variances within the tolerance limits can be posted to a separate small difference account automatically instead of either manually adjusting the differences.

These difference are quite similar to exchange rate differences , where the difference arising from difference is exchange rates are posted to separate GL account automatically during invoice verifications.

Tolerance can be defined for 

  • Company Code
  • Company Code + Vendor
  • User

These tolerance at different levels help business in posting the difference based on the company policies and procedures.

Vendor Specific Tolerance.

Vendor specific tolerance is assigned to vendor via a tolerance group assigned to the vendor master. The tolerance group is defined at company code level.

Transaction Code : OMRX

Menu Path : SPRO --> Material Management --> Logistics Invoice Verification --> Configure Vendor Specific Tolerance

 

 

Configuration Notes :

  1.  Difference can be posted to a small difference account or a credit memo can be generated , wherein the difference is posted to a clearing account. This based on the configuration  if "Absolute Invoice reduction" setup.
  2. GL difference account used for small difference posting is based on OBYC --> DIF key configuration
  3. Sequence of tolerance check is
    1. Vendor specific tolerance
    2. Tolerance key BD for small difference based on company code

 

 

SAP Help Documentation :

Configure Vendor-Specific Tolerances

In this step, you define tolerance groups for each company code. You can assign these tolerance groups to each vendor in the vendor master record.
You can define the following tolerances:

Total-based acceptance

  • If the difference is within the tolerance range, the system automatically generates a difference line on a neutral income/expense account for small differences for invoices with debit/credit differences when posting the invoice.

Total-based invoice reduction

  • If the difference is within the tolerance range, the system posts the difference to a clearing account and generates a credit memo in a second document to clear this.

The system uses the following logic:

  1. 1. The system determines the difference between the net invoice amount (= gross invoice amount less taxes and unplanned delivery costs) and the net total of the items.
    If the net invoice amount is the greater, the difference is positive; if the net invoice amount is the smaller, the difference is negative.
  1. 2. Negative differences:
    1. a) If the negative difference is smaller than the absolute negative small difference limit defined, the system generates a posting to a small differences account for this difference.
    1. b) If the negative difference is greater than the absolute small difference limit defined, the system checks if the absolute difference is smaller than the lower of the absolute and percentage lower limits.
      If this is the case, the system creates a posting to a small differences account.
      If this is not the case, the system cannot post the invoice.
  1. 3. Positive differences:
    1. a) If the positive difference is smaller than the positive small difference limit defined, the system generates a posting to a small differences account for this difference.
    1. b) If the positive difference is greater than the positive small difference limit defined and the Check limit field is not selected for total-based invoice reduction, the system checks whether the positive difference is smaller than the lower of the absolute and percentage upper limits.
      If this is the case, the system creates a posting to a small differences account.
      If this is not the case, the system cannot post the invoice.
    1. c) If the positive difference is greater than the positive small difference limit defined and the Check limit field is selected for total-based invoice reduction, the system checks if the difference is smaller than the lower of the absolute and percentage upper limits for total-based invoice reduction.
      If this is the case, the system generates a posting to a clearing account for invoice reduction and creates a credit memo document.
      If this is not the case, the system cannot post the invoice.

      The system does not try to reduce the invoice based on the total in the following cases:
      - If you manually reduced an invoice item
      - If you manually accepted a difference in the document header
      - If you entered a credit memo
    • In these cases, the system checks directly whether it can accept the positive difference.

Activities

Specify

  • Up to which amount the system should automatically clear a balance when a balance exists
  • How the system should post the difference

Further notes

If the system can create a small difference, it posts this difference to the account specified in account determination for transaction DIF.
See: Configure Automatic Postings

If no tolerance group is assigned to a vendor or if no tolerances have been specified for the assigned tolerance group, the system creates a difference line if the difference is smaller than the tolerance defined for tolerance key BD.
See: Set Tolerance Limits

Example

There is an invoice in the system to be posted; the vendor-specific tolerances are defined for the invoicing party as follows:

Total-based acceptance of negative differences
- Check absolute lower limit: 200.00-
- Check percentage lower limit: 4.00 %
- Check negative small difference: 10.00-

Total-based acceptance of positive differences
- Check positive small difference: 5.00
- Check absolute upper limit: 30.00
- Check percentage upper limit: 2.00 %

Total-based invoice reduction
- Do not check absolute and percentage upper limits

The invoice value expected by the system is 4000.

Gross Small
inv. amount
difference Balance Explanation
3992   yes 0 2 a)
3925   yes 0 2 b)
3820   no 180- 2 b) percentage lower limit violated
4004   yes 0 3 a)
4025   yes 0 3 b)
4035   no 35 3 b) absolute upper limit violated

 

 

 

 

 

 

 

 

 

 

 




Add Comments