Setting limits and tolerances

You can set limits and tolerances for security groups on the Limits and Tolerances tab of the Security Groups application.

About this task

On the Limits and Tolerances tab, you can define limits for purchase requisitions, purchase orders, material requests, invoices, and contracts.

You can also define tolerances for invoices, tax, and services. A tolerance is the amount by which a value can differ from the amount that is expected. An upper limit defines the amount by which the value can exceed the expected amount. A lower limit defines the amount by which the value can be less than the expected amount.

Procedure

  1. In the Security Groups application, open the security group for which you want to define limits and tolerances.
  2. Click the Limits and Tolerances tab.
  3. Click New Row.
  4. In the Organization field, select the organization for which you want the limits to apply.
  5. In the Limits section, define the limits that you want to set for POs, PRs, material requests, invoices, or contracts. Any transaction below the specified limit will be approved.
  6. In the Tolerance sections, define the amounts by which invoices, tax, and services can differ from the amount that was approved. Use the following table as reference.
    Field Enter
    Upper Invoice Amount The amount by which the invoice line can exceed the amount that is specified on the purchase order line.
    Lower Invoice Amount The amount by which the invoice line can be less than the amount that is specified on the purchase order line.
    Upper Invoice Percent The percentage by which the invoice line can exceed the amount that is specified on the purchase order line.
    Lower Invoice Percent The percentage by which the invoice line can be less than the amount that is specified on the purchase order line.
    Upper Tax Amount

    The amount by which the total tax can exceed

    the sum of the tax on the invoice lines.
    Lower Tax Amount The amount by which the total tax can be less than the sum of the tax on the invoice lines.
    Upper Tax Percent The percentage by which the total tax can exceed the sum of the tax on the invoice lines.
    Lower Tax Percent The percentage by which the total tax can be less than the sum of the tax on the invoice lines.
    Upper Service Amount The amount by which the total invoice cost can exceed the total purchase order cost. This tolerance is applied only if a service cost exists on the invoice that is not on the purchase order.
    Lower Service Amount The amount by which the total invoice cost can be less than the total purchase order cost. This tolerance is applied only if a service cost exists on the invoice that is not on the purchase order.
    Upper Service Percent The percentage by which the total invoice cost can exceed the total purchase order cost. This tolerance is applied only if a service cost exists on the invoice that is not on the purchase order.
    Lower Service Percent The percentage by which the total invoice cost can be less than the total purchase order cost. This tolerance is applied only if a service cost exists on the invoice that is not on the purchase order.
    When entering upper and lower limits, any negative signs that you enter are not considered. All values are converted to the absolute value of the defined entry.
    For example, if you enter a lower invoice percent of 10, the invoice line can be less than the amount on the purchase order line by 10%.
    If you enter -10, the invoice line can still be less than the amount on the purchase order line by 10%. The negative sign is not considered.
  7. Save the record.