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Invoice Tolerance key BW.

Former Member
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What is the significance of Invoice tolerance key BW.

Where does it hit ?

-Amol

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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hi

Sorry forgot this

When order price quantity variances occur, the account movements made are the same as those made when price variances occur on their own.

The variances are posted either to the stock account, or to one of the accounts " Revenue from Price Differences" or "Expenses from Price Differences", depending on the type of price control defined for the material.

The difference between the GR/IR clearing account and the vendor account is posted to the stock account if the material is subject to moving average price control and there is sufficient stock coverage at the time of IR

Thanks & Regards

Kishore

Former Member
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Hi

BW: Percentage OPUn variance (GR before IR)

The system calculates the percentage variance between the following ratios:

quantity invoiced in order price quantity units: quantity invoiced in order units and goods receipt quantity in order price quantity units : goods receipt quantity in order units.

The system compares the variance with the upper and lower percentage limits defined.

This Check is done at the time of IR.

Thanks & Regards

Kishore

Former Member
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Could you please elaborate this thing to me since I am not able to get it.I can find this text when we hit F1 for the same.

Former Member
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Hi

Please see the below example

You order 100 pieces of a material at $20 per kg. In this case, "piece" is the purchase order unit (OUn), and "kg" (kilogram) is the order price unit (OPUn).

With this type of purchase order, the ratio between piece and kilogram must also be entered so that the system can convert quantities of one unit of measure into the other, for example, four pieces equal 10 kg. you enter this in the Conditions tab of the PO line item.

A variance in order price quantity occurs in the following cases:

Invoice receipt after goods receipt (BW)

Ratio (Invoice quantity in OPUn) : (Invoice quantity in OUn) is different to the ratio (Goods receipt quantity in OPUn) : (Goods receipt quantity in OUn).

GR is done for 100 pieces = 240 KG

IR is done for 100 Pieces = 260 KG

In such case the sytem check the % variance & checks the % based on the tolrance key.

Same is the case for below.

Invoice receipt before goods receipt (BR)

Ratio (Invoice quantity in OPUn) : (Invoice quantity in OUn) is different to the ratio (Order quantity in OPUn) : (Order quantity in OUn).

Thanks & Regards

Kishore

Edited by: Kishore Kumar Chiluka on Jun 10, 2008 1:09 PM