Receipt date tolerances for purchase schedules
Suppliers may deliver goods earlier or with a higher quantity than ordered, for example to save freight costs. If the time and quantity deviations are within tolerable limits, buyers accept these deviations. However, if tolerances are exceeded, several issues may happen on the buyer's side. For example, too much inventory on hand, too little warehouse space, and cash flow problems because of required advance payments.
Buyers require a method to control and react on exceeding tolerances in the receipt process. Consequently, the existing receiving tolerance check on warehouse receipts is now also applicable for push schedules.