Price Variance (PP) - MIRO

Question

Hi Guys,
Can you please explain how the PP tolerance in MIRO works with an example and about absolate, Min tolerance and Max Tolerance Limits?
Thanks in Advance,
Laxmi.

Answer 1

Hi
http://help.sap.com/saphelp_45b/helpdata/en/47/60fa3d49f011d1894c0000e829fbbd/frameset.htm
Suppose if PO price is $100 then system should allow up to $105 with out blocking means with percentage of 5%. If it exceeds 5% system should block the invoice.
Maintain the configure in
SPRO-> IMG-> MM -> Purchasing-> Purchase Order-> Set Tolerance Limits for Price Variance
Here you can maintain the tolerance limits for key PE: Price variance: purchasing
Then,Invoice will be blocked 'R'
Invoice is blocked, all the items are blocked. Even if the invoice only displays variances in one item, the whole invoice is blocked for payment.
If you post an invoice with a blocking reason, the system carries out two steps:
The account postings resulting from the invoice are made.
In the vendor item, the system enters an 'R' in the field Payment block so that Financial Accounting cannot make payment for the invoice.
Go to TCode OMR6 (Invoice Block under the LIV section of the IMG) and drill into the CoCd and the Tolerance Key PP. Activate the lower limit check by selecting teh Check Limit button and put in a Value, a Percentage, or both. Save it and that should give you what you're looking for.
Tolerance Conditions T.Code:OMR6
Tolerance Limit
BD Form small differences automatically 100 UPPER
BR Percentage OPUn variance (IR before GR) 5% UPPER AND LOWER
BW Percentage OPUn variance (GR before IR) 1% UPPER AND LOWER
DQ Exceed amount: quantity variance 0 UPPER (NO TOLERANCE)
DW Quantity variance when GR qty = zero 0 UPPER (NO TOLERANCE)
KW Var. from condition value NO CHECK
PP Price variance 5% UPPER AND LOWER
PS Price variance: estimated price 5% UPPER AND LOWER
ST Date variance (value x days) NO CHECK
VP Moving average price variance NO CHECK
Regards