Purchase Requisition workflow price tolerance

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Posted on by Lionel Vrac

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Hi,

Via purchasing policies > PO creation and demand consolidation rule menu, I can set a percentage of price tolerance with the following explanation :

"Enter the maximum limit that the net amount of a purchase requisition line item can increase to pass validation. Purchase requisition lines that exceed the price tolerance are processed using the error processing rule"

2 questions :

- Is the rule apply only when "override unit price" option has been authorized on Purchase requisition ?

- If yes, is this function used to prevent any PO creation if, for exemple, I change the PR line unit price with a new price falling out of tolerance ?

(initial price 10 euros / I decide to change with12 euros, with a tolerance of 10% the system will block PO creation since unit price > 11 euros ?)

Which price is considered ? the one initialized as unit price in PR line ?

Thanks for your help !

Lionel

Categories:

Financial Management

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MATTGUO 22,294 on at

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RE: Purchase Requisition workflow price tolerance

Hello Lionel,

Thanks for your update.

Could you please verify the answer to close this thread.
Lionel Vrac 270 on at

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RE: Purchase Requisition workflow price tolerance

Thanks a lot for your help. Clear.
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MATTGUO 22,294 on at

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RE: Purchase Requisition workflow price tolerance

Hi Lionel,

The calculation is based on the default price, trade agreements, and purchase agreements that are valid at the time that the purchase order is created.

Take a case, the PR is 80 usd, the item default price is 90 and the tolerance is 10%, when you release the PR, system will throw the error.