# Tolerance limit for Invoice ??

Hi all

Can anybody explain me about the tolerance limit for incoming invoice ...??

What is tolerance limit and why its need here in SAP ..??

Can anybody give me some explaination with example.

Thanks

SAP-MM

##### Pardeep Malik replied

Hi,

First Understand the Type of Varience

1. **Quantity variance**: For a purchase order, the open quantity to invoice is a result of the delivered quantity and the quantity already invoiced. There is a quantity variance if the invoice quantity does not match this open quantity. At the absolute upper limit, the quantity variance is evaluated on the basis of the amount in the invoice item. This means that invoice items with a small amount result in a relatively large quantity variance, and that invoice items with a large amount result in a small variance. You can also define percentage limits for the quantity variance check, for which the system does not take account of the purchase order price.

2. **Price variance**: There is a price variance if the invoice price (invoice amount divided by the invoice quantity) is not the same as the PO net price. In cases where the price in the purchase order is flagged as an estimated price, you can set up special tolerances.

3. **PO price quantity variance**: There is a PO price quantity variance if the relationship between the PO price quantity and the PO quantity in the invoice is different than at goods receipt (or, if no goods receipt has been posted, different than agreed in the purchase order).

4. **Date variance**: For each item, the system creates the product from the amount * (planned delivery date - invoice entry date) and compares this product with the absolute upper limit you have defined. This means that invoice items with a small amount result in a relatively large date variance, and that invoice items with a large amount result in a small variance.

You define tolerances in Customizing for:

1. Quantity variances

2. Price variances

3. Purchase order price quantity variances

4. Date variances

Hope Help U !

Regards,

Pardeep Malik