Price Block Tolerance

Hi
Can any one explain me the significance of absolute value and percentage value in price block tolerance limits?
Thanks
Rajesh

The example displays the tolerance limits for price variances for an estimated price. If the purchasing department flags the order price as an estimated price in the purchase order, these tolerance limits are checked at invoice receipt. Both a percentage and an absolute variance are set for the upper and lower limits. If one of these limits is exceeded, the system displays a warning message. If one of the upper limits is exceeded, the invoice is blocked for payment when it is posted.
If you generally do not want to block an invoice item on the basis of a particular variance, you must set all the tolerance limits to Do not check. For example, you would not want to have the system check for quantity shortfall if you often receive invoices for part quantities.
If you want to block an invoice item on the basis of a particular variance in all cases, set the value and percentage for the upper limit to zero and select Check limit.
You can define up to four limits for each tolerance:
Lower limit
Absolute
Do not check
Check limit: X
Value: 20.00
Percentage
Do not check
Check limit: X
25 %
Upper limit
Absolute
Do not check
Check limit: X
Value: 10.00
Percentage
Do not check
Check limit: X
10 %
both these values are in reference of hte estimated price.
If in figures absolute and if in %ge Percentage in context of estimated Price
Regards
Ankur

Similar Messages

Reg Price block and Qty block in MM Invoice docs Tolerence Keys adjustment

Hi Friends,
Related to MM Invoice documents gets blocked with Price block and Qty block,based on this FI doc also gets blocked with Payment block indicator"R".As per Std SAP we can remove these blocks thru MRBR. Right now my users are asking not required to remove these blocks with MRBR Tcode.
So i checked the Tolerence Limits defined for the co code and Tolerence keys.
As per my understanding Tolerence Keys "PP-Price variance", "DQ-Exceed amount: quantity variance" need to adjust with upper llimits and Lower Limits.
here i can see Upper and Lower check limit Tolerance limit 5.00% for Tolerence Key "PP-Price variance"
Tolerence limit 0.01% for Tolerence key "DQ-Exceed amount: quantity :quantity variance
Instead of changing the Tolerence Limits can i select the DO NOT CHECK Radio button for the bothe Price and Qty block.
If i selected the DO NOT check button what will happen,how it works.
How i can maintain the Tolerence keys,is there any other Tolerence keys also need to maintain.
Please suggest me with your valuable inputs.
Brgds,
RK
Edited by: RK.SAP on Nov 17, 2010 7:02 AM

hi,
If you do not want to check the Invoice for tolerance keys like quantity variance and price varaince then tick on don't check .In this case system will not block any invoice and invoice will post Automatically without any error.
Please check other tolerance keys in SPRO: OMR6
One more blocking is defined in the vendor master also under payment transactions accounting screen.There you are defining the tolerance group for Invoice Verification.
Regards,
Amit

Quantity and Price block on MM docs not appearingin MRBR list

Hi Gurus
Even if there are quantity and prices blocks in the MM doument , the MRBR list doesnot display the blocked documents.
As a result we are not able to release the documents and remove the block.
What could be the possible reason for this?
And is there any other way to remove the block on MM document without going through MRBR.?
Early Response is highly Appreciated
Thanks a Lot
Rgds

hi,
If you do not want to check the Invoice for tolerance keys like quantity variance and price varaince then tick on don't check .In this case system will not block any invoice and invoice will post Automatically without any error.
Please check other tolerance keys in SPRO: OMR6
One more blocking is defined in the vendor master also under payment transactions accounting screen.There you are defining the tolerance group for Invoice Verification.
Regards,
Amit

Invoice price block,PO in different currency

Hi,
The PO and the invoice are in different currency and the invoice is price blocked.
1.What do i do?
2.And how to check the difference in amount if the currency of PO and invoice are different?And what is to be done for it?
3.The accounting document is already created for the invoice.Does this mean the invoice is already posted?If yes, does it mean it is possible to post an invoice even if some of its items are blocked?

Hi
If invoice currency (say USD) is different from PO currency (INR), then you can enter invoice currency (USD) in invoice under basic data tab -next to amount field. Then PO currency (INR) will be calculated with invoice currency (USD) exchange rate on that date and new value will be proposed in USD.
If the exchange rate is not taken care then it will go to expense/stock account.
Thanks
Edited by: Praveen Raghavendra on Dec 23, 2008 9:51 AM

MIRO: Activate Workflow template for Price Blocking

Dear Friends,
I am in the process of configuring WF for the Price block at the time of posting of invoices.
I maintain the following setting in customizing:
Logistics Invoice Verification->Invoice Block->Activate Workflow Template->TG 20000030 Assign agents to tasks->WS 20000397 Treatment of inv. blkd for price, Log.IV->TS 20000661 At least 1 item blocked for price reas.?
Now for this task, I want to assign the PO creator. I do not want to assign Agent as a specific SAP user. It should be the generic user who creates the PO.
Business Requirement: A mail should be sent to purchaser, when the invoice is blocked for price reasons.
Please Advise.
With Kind Regards
Faisal

Friends,
I want to set a deadline monitoring for a case when the approver doesnt execute the workitem even after 2days. (so I believe I need to use "Requested Start")?
Further I understand how this is done, my question is can we do change it to the standard template or do I need to copy it and then make the changes.
Also Kindly share some information on using SRM ALERTS for the same functionality to send reminders/alets to approvers on delay of approving task.
Thank you so much.
Vj

Price Block across Invoices (not per invoice)

Guys
Do you know of a way to implement price block on the PO level? PP price block is per invoice, is there another way i can set it up so that all invoices are looked at for price block not at a per invoice level?
Using PP: I can have many invoices, all can potentially be 200 over without going into block.

For clarification
Lets assume i have a PO for Qty 10 and price 10000
If i set PP block for 250, it means i can post
Invoice 1: Qty 1, price 1200
Invoice 2: Qty 1, price 1200
Invoice 3: qty 1 , Price 1200 .. and so on
Now if i see none of these invoices go into price block - but i have exceeded po price by 2000
I want to setup price block such that if sum total of all 10 invoices exceeds 250, it should go into price block.
Any ideas?

Qty & Price Block.

Hi All,
Plz can anyone of u say how can i identify whether its Qty Block or Price Block in the Invoice.
Eg : I Have PO Qty 1.00 & Price 1,653.24.
I have Inv Qty 1.00 & Price 1,717.24.......
So can you me is this a Qty Block or Price Block ....or both ( Since my Invoice has both the Blocks)
Regards
Balaji

Hi ..
Thanks for the Immd Reply......The Issue is i got the Invoice as Blcoked.
When i see in the Line item of the Invoice i see the Blocking Reason to be both
Price and Qty. But the Above values shown are my Po & Inv Values. So what i am trying to find is how i can identify what kind of a block looking at the Docs .
How a Qty Block Appears & How a Price Block Appears????Say in the example above which i wrote for Qty 1 i have more price ,,, So is it a Qty Block or Price Block????
Regards
Balaji

Triggering of price block for lower tolerance limits

Hi.....
I have defined tolerances for invoice verification using tolerance key PP (path: spro --> Material Management --> Logistics Invoice Verification --> Invoice Block --> Set Tolerance Limits). Our system is correctly blocking invoices when it comes to upper limits. However, when I post an invoice outside the lower limits, system is giving me a warning but it is not blocking the invoice. It simple posts the invoice despite the difference.
Where in customizing can you define that exceeding lower limits, also should lead to a block?
Kind regards
Jacob

Hi Jacob,
in SAP standard the Invoice is only blocked if it is above the upper limit. If it is below the lower limit it will only issue a warning message:
In SAP Library: MM-Invoice with Variances-Tolerances you will also find the following explanation:
".. If the variance is outside the tolerance limit, the system displays this in a warning message. If you do not adjust your entries, you can still post the invoice. If, however, the upper tolerance limit is exceeded, the system automatically blocks the invoice for payment."
Usually you can be fine with the lower payments, it is the Vendor who should be afraid but If you anyway need to have that block I think the only way is to develop.
Let me know if useful.
cheers, MM

Mrbr quantity and price block

Dear Forum,
I got the help from forum at which point it is get blocked and obviously during miro.
Now I would like to know the below assuming over tolerance limit :
1) quantity variance say PO-100unit GR-80unit IR-50unit
the variance is IR against GR right? this will get blocked. correct?
2) quantity variance say PO-100unit GR-80unit IR-80unit
this will NOT get blocked as IR and GR the same. correct?
3) price variance compare the unit price between PO and IR only. correct?
Thanks

1) quantity variance say PO-100unit GR-80unit IR-50unit
the variance is IR against GR right? this will get blocked. correct?
2) quantity variance say PO-100unit GR-80unit IR-80unit
this will NOT get blocked as IR and GR the same. correct?
3) price variance compare the unit price between PO and IR only. correct?
1.Yes due to the difference in qty and price it will get blocked depending upon the configuration of Tolerance limit
2.Yes, since GR and IR qty remains same and if the price is also same(PO and IR) this will not get blocked
3.Yes

ERS and price blocking

Can any one confirm that MRRL (ERS settlement) will block an invoice for price during the settlement? If this is possible what is the trigger?
I have not experienced this in the past but have a current example that at least for now looks like the settlement blocked the invoice. We haven't replicated this nor have I looked at it in much detail, just wanted to understand from this group if anyone has any experience with ERS blocking invoices.
Thanks
Sandra

for consignement it is MRKO...........that cycle is completely different........
but as a refresher I will suggest you one thing.....this was my earlier reply to earlier thread..........
The example displays the tolerance limits for price variances for an estimated price. If the purchasing department flags the order price as an estimated price in the purchase order, these tolerance limits are checked at invoice receipt. Both a percentage and an absolute variance are set for the upper and lower limits. If one of these limits is exceeded, the system displays a warning message. If one of the upper limits is exceeded, the invoice is blocked for payment when it is posted.
If you generally do not want to block an invoice item on the basis of a particular variance, you must set all the tolerance limits to Do not check. For example, you would not want to have the system check for quantity shortfall if you often receive invoices for part quantities.
If you want to block an invoice item on the basis of a particular variance in all cases, set the value and percentage for the upper limit to zero and select Check limit.
You can define up to four limits for each tolerance:
Lower limit
Absolute
Do not check
Check limit: X
Value: 20.00
Percentage
Do not check
Check limit: X
25 %
Upper limit
Absolute
Do not check
Check limit: X
Value: 10.00
Percentage
Do not check
Check limit: X
10 %
both these values are in reference of the estimated price.
If in figures absolute and if in %ge Percentage in context of estimated Price
Regards
Ankur

Invoice Block - Tolerance Key - Can currency can be changed??

Hi Gurus,
We can set the below in SPRO,
Material Management->Logistic Invoice verification->Invoice Block->Set Tolerance Limit-> Here we can maintain for company code / Tolerance Key and details.
While we maintaining the tolerance key, depending upon the company code, the currency is defaulted. (Currency field is display status).
1. We have a request to change this currency to different currency? is it possible?
2. I find about 14 Tolerance Keys. Are these tolerance keys provided by SAP. Can we define or redefine tolerance key? if so, where?
Kindly inform me the above details.
Thanks and Best Regards,
Mohan

hi,
Example:
Suppose if you have set the del. cost in the PO as A...
After this you do MIGO...
And then you come to MIRO, and in between suppose if the delivery cost increases or decreases(may be due govt. rules),
then in that case you try to save amount/pay more to the vendor.. or
In case if any or your employee is not entering the del. cost properly, then in that case, system shd check internally and throw a message for you and if req. block the invoice...
So, in that case just for precautions you use the this tolerance key...
if in case this happens assuming with my first example then you may need to release this IR manually..
Formula i have provided above by which system calculates this all..
Regards
Priyanka.P

PO Price Variance Tolerance

Hi Experts,
Can we do "Set Tolerance Limits for Price Variance" by document type? I saw the standard config is by company code.
Thanks
John K.

hi,
what is your requirement. if you set "Set Tolerance Limits for Price Variance" here it is company code level not document type or PO level you can set if you require at company code level.you can set tolerance limit at PO level in delivery tab at item level.
Regards,
mukesh

Release Invoice Price Block and Quantity Block

Hi,
How can I release the Invoice Price and Quantity block at the same time? I need to create a Step in a work flow to release all blocks of a two-way match block invoice.
I've already tried to have a BDC for transaction MRBR but it is not working.
Can anyone help?

Hi Simi,
This type of behaviour is documented in SAP note 394370:
"A document generated with MIRO was blocked for payment.You cancel the
payment block from the vendor line item in the FI follow-up
document.Transaction MRBR then displays the invoice document
nevertheless. Why?
The invoice document itself cannot be changed by changes to the
follow-up documents; this is not programmed.Transaction MRBR therefore
continues to display the document as blocked. If this document is
released from an MM point of view, the FI follow-up document remains
released.Thus the damage caused is restricted to unnecessary work by the
user.
SAP recommends that you only use the release transactions for releasing
invoices."
MRBR generates its list of blocked invoices from table RBKP_BLOCKED and is the
only transaction which deletes entries from this table thats why when your report
calls FB02 to remove the payent block MRBR will still show the invoice as blocked.
You could code in a pop up message in your report that prevents the user from
deleting the payment block and to advise using MRBR instead to delete the block.
Hope this helps,
Adam.

Invoice Block - Tolerance Key KW

Hi, can someone give example of scenario how toleracne Key KW for invoice block works?
Thanks!

hi,
Example:
Suppose if you have set the del. cost in the PO as A...
After this you do MIGO...
And then you come to MIRO, and in between suppose if the delivery cost increases or decreases(may be due govt. rules),
then in that case you try to save amount/pay more to the vendor.. or
In case if any or your employee is not entering the del. cost properly, then in that case, system shd check internally and throw a message for you and if req. block the invoice...
So, in that case just for precautions you use the this tolerance key...
if in case this happens assuming with my first example then you may need to release this IR manually..
Formula i have provided above by which system calculates this all..
Regards
Priyanka.P

Posting invoice despite its price exceeding PO price beyound tolerances

Dear all,
Is it possible to "post" an invoice even if it exceeds the PO price beyond the defined tolerances?
What are the settings that should be done in the standard SAP to make a warning message appear at such an instance and still enable the user to post the invoice.
Regards:
Shankar Raman R

Hi,
Go to SPRO-Materials Management-Logistics Invoice Verification-Incoming Invoice-Configure Vendor-Specific Tolerances,,,
Hope it helps to define tolerances.
Configure Vendor-Specific Tolerances
In this step, you define tolerance groups for each company code. You can assign these tolerance groups to each vendor in the vendor master record.
You can define the following tolerances:
Total-based acceptance
If the difference is within the tolerance range, the system automatically generates a difference line on a neutral income/expense account for small differences for invoices with debit/credit differences when posting the invoice.
Total-based invoice reduction
If the difference is within the tolerance range, the system posts the difference to a clearing account and generates a credit memo in a second document to clear this.
The system uses the following logic:
1. The system determines the difference between the net invoice amount (= gross invoice amount less taxes and unplanned delivery costs) and the net total of the items.
If the net invoice amount is the greater, the difference is positive; if the net invoice amount is the smaller, the difference is negative.
2. Negative differences:
a) If the negative difference is smaller than the absolute negative small difference limit defined, the system generates a posting to a small differences account for this difference.
b) If the negative difference is greater than the absolute small difference limit defined, the system checks if the absolute difference is smaller than the lower of the absolute and percentage lower limits.
If this is the case, the system creates a posting to a small differences account.
If this is not the case, the system cannot post the invoice.
3. Positive differences:
a) If the positive difference is smaller than the positive small difference limit defined, the system generates a posting to a small differences account for this difference.
b) If the positive difference is greater than the positive small difference limit defined and the Check limit field isnot selected for total-based invoice reduction, the system checks whether the positive difference is smaller than the lower of the absolute and percentage upper limits.
If this is the case, the system creates a posting to a small differences account.
If this is not the case, the system cannot post the invoice.
c) If the positive difference is greater than the positive small difference limit defined and the Check limit field is selected for total-based invoice reduction, the system checks if the difference is smaller than the lower of the absolute and percentage upper limits for total-based invoice reduction.
If this is the case, the system generates a posting to a clearing account for invoice reduction and creates a credit memo document.
If this is not the case, the system cannot post the invoice.
The system does not try to reduce the invoice based on the total in the following cases:
- If you manually reduced an invoice item
- If you manually accepted a difference in the document header
- If you entered a credit memo
In these cases, the system checks directly whether it can accept the positive difference.
uts
Award if helpfull

Price Block Tolerance

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