Handling vendor invoice out-of-tolerance conditions

When you run the update and reconciliation process for trade invoices, the cost on the vendor invoice is compared to the cost on the original purchase order. Any discrepancy must be within the defined vendor or company tolerances. If the discrepancies are outside the accepted tolerances, you must research the problem and manually fix it. When you fix the discrepancy, you can override the tolerances with or without affecting the product cost. You can also override the tolerances without paying the vendor the variance amount.

This topic describes how to override tolerances with or without affecting the product cost. You can also perform this task using Vendor Entry Group Update/Reconcile Invoices Report.

Select Vendor > Entry > Invoice Center.
Specify the group that contains the invoice with reconciliation errors.
Select the invoice from the list.
Select Action > View Errors.
Review the errors to verify that the invoice/purchase order has been received.
If the purchase order has not been received, wait for the purchase order to be received, run Final Update again, and then check for reconciliation errors.
If the purchase order has been received and tolerance errors exist, run reconciliation again, overriding tolerances.
Open the invoice, and then open the purchase order that is out of tolerance .
Select the purchase order, and then click Edit.
Select Override Tolerances.
You must have the correct security in SA Operator Setup to select this option.
Click Save, and then close the PO# window.
On the Vendor Invoice Center window, select the invoice and the select Action > Final Update.
Specify the invoice date, and then select Update Files.
Verify that the G/L Variance account is specified.
To override tolerances without affecting product costs, select Receive Cost in the Cost field.
To override tolerances while affecting product costs, select Match to Cost in the Cost field.
Click Save.