Define Allowed Variances for Invoice Matching

… the price variance expressed as an amount that is accepted when a supplier invoice is matched to a goods receipt in 'Supplier Invoice. Match GR Line' (APS360).

The price is defined based on the purchase price U/M and the invoice currency. Note that the variance is only applied per invoice line in (APS360), not the entire invoice.

If you defined a specific percentage for the price variance, none of the values must be exceeded for the line variance to be accepted in (APS360).

A positive price variance is when the invoice price is less than the price on the purchase order, or if the credited amount is more than expected.

A negative price variance is when the invoice price is more expensive than the price on the purchase order, or if the credited amount is less than expected.

… the quantity variance expressed as a number of units.

The quantity is defined based on the purchase order U/M. Apart from this, the field is used as the price variance field.

A positive quantity variance is when the invoice quantity is less than the quantity on the purchase order. If it is a credit, then the invoice quantity is more than expected.

A negative price variance is when the invoice price is more expensive than the price on the purchase order, or if the credited amount is less than expected.

… an amount controlling how a total amount within allowed limits should be managed automatically when using workflow (Next Manual Step) 8 for the invoice matching or 'Invoice matching on PO header level' in (APS450) . 'Allowed limits' are the limits defined for the two fields above.

These rules apply:

• If the total variance amount is lower than the amount in this field, the variance is automatically posted using accounting rules PP20-240.
• If the total variance amount is equal to or greater than the amount in this field but still within allowed limits, the variance is distributed automatically to each invoice line. The distribution is done proportionally based on the invoice line net amount.

Example:

You have defined USD 6 as the highest allowed variance and USD 3 as the limit amount.

1. You receive an invoice with an invoice amount differing from the invoice lines (based on the purchase order), in (APS360) with USD 2. This variance is posted automatically to the account selected for accounting rule PP20-240, without you having to leave 'Supplier Invoice. Record' (APS100). You can later follow up the variance per supplier.

2. You receive an invoice with a variance somewhere between USD 4-6. This variance is distributed automatically and proportionally to the invoice lines, based on the net amount of the respective line, without leaving (APS100). You can later follow up the variance on invoice line level, that is, per item.

For Brazil country version and sorting order 1, a record must be set up with blank 'currency code'. There is also a sorting order 9-'Allowed ICSM amount variance', where a record must be set up with 'currency code'=*.

… the allowed variance expressed as an amount that is acceptable between the invoice head total and the total of invoice lines in (APS451). If the total variance amount is within the acceptable amount, then a line of type 4 (rounding off) is created in (APS451) for the variance amount during the validation process.

Example:

The foreign currency amount of the invoice is 100 USD in (APS450) and the sum of the invoice lines in (APS451) is 998 USD. The variance between the invoice header and the invoice lines is 2 USD.

If the variance is within permitted tolerance in sorting order 5, then a new line type 4 is added for the variance to the invoice lines in (APS451).

The accounting of line type 4 depends on the allowed tolerances in sorting order 4. If the accounting line type 4 is within the allowed tolerances, then it is accounted for using accounting rule AP50-280. Otherwise, it is accounted for using accounting rule AP50-215.

…when the invoice line price, quantity, or line amount is changed in (APS360) and when the account entries are created and rounded to currency decimals. The rounding occurs in invoice currency and is automatically recorded according to the accounting string in the AP accounting option defined in parameter '095 AP accounting option for rounding variance'.

…or when partial goods receipts are matched to the same invoice line type 2. The rounding occurs if the variance is within tolerance and is created in local currency. An invoice line type 5 is either created automatically upon goods receipt at the same time as invoice line type 4 is created, or in (APS360) when manually connecting goods receipts. Invoice line type 5 is accounted for on PP20-235/236.

...or from claim deliveries that consist of several packages or lot numbers. The rounding occurs if the variance is within tolerance and is created in local currency. The rounding is automatically accounted for with accounting event PP25-225/226 when the credit invoice is matched either in (APS100) or in (APS450).