What is a Tolerance?

A tolerance is an amount by which the ceiling can be exceeded. When a ceiling amount is reached at any level, it can be exceeded up to the tolerance amount set at, or above, that level. When the tolerance level is reached, billing and revenue recognition stops. You can set a tolerance at any level within the activity structure.

For billing, the amount above the ceiling but within the tolerance amount is considered overage. For revenue recognition, the amount above the ceiling but within the tolerance amount is considered revenue at risk.