8/3/24, 8:22 PM Document 625605.

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Copyright (c) 2024, Oracle. All rights reserved. Oracle Confidential.

E1: 43: Tolerance Checking (P4322 / P4312 / P43060 / P4314) (Doc ID 625605.1)

In this Document

Purpose
Details
Tolerance Checking by Quantity, Unit Cost or Extended Amount
Tolerance Checking by Receipt Date
Specifying No Tolerance
Item Exception Tolerance Example
Placing a Voucher on Hold that Exceeds the Tolerance
Frequently Asked Questions
Question 1 - We need to prevent over-receipt of goods into a specific branch/plant. Tolerance rules can be set
by item number, commodity class and company. There is one company with multiple branch/plants - how does
one set the system to not allow over receipts of items in this branch/plant?
Question 2 - Can Tolerance Rules (P4322) be set up by Order Type?
Question 3 - What business function is used to check tolerance rules in purchasing?
Question 4 - What is the Maximum Value for Tolerance Quantity?
Question 5 - If the Quantity Ordered is a negative value how is Tolerance checking performed?
Question 6 - If Tolerance Quantity or Percent is bigger than 999999999 what will occur?
Question 7 - What is the value set in determining Zero Tolerance?
Question 8 - When setting Zero Tolerance, why is the value not simply 0?
Question 9: : Can a hold code be placed on the voucher if it exceeds the tolerance limit?
Question 10 : In case of a foreign purchase order, what amounts will be compared with tolerance threshold:
domestic or foreign?
Question 11: When a tolerance is setup for PO Receipts, the error is issued if the unit cost of the receipt exceeds
the PO cost by more than the tolerance percent but not if the unit cost of the receipt is less than the PO cost by
more than the tolerance percent. Is this working as designed?
Question 12: Tolerance checking can be done on three levels, company, commodity class, or item. How is the
commodity class retrieved?
Question 13: If the tolerance checking is set on all three levels: company, commodity class and item; which
value will the system use during voucher match?
Question 14: Having tolerance checking activated, how to put the vouchers that exceeds tolerance rules on pay
status = H (hold)?
Question 15: Are all Tolerance rule types available for voucher match (Quantity, Unit Cost and Extended
Amount)? Or is it only for Extended Amount ?
Question 16: Is Tolerance Checking supported with Voucher Re-cost?
Question 16: Why does the R470412 EDI Inbound 810 still create a PV if Tolerance Checking is set up in the
P4322?
Question 17: How is the tolerance calculation related to quantity performed during P43060 release when partial
quantity has previously been released for a line?
Question 18: Is the tolerance checked within receipt routing?
References

APPLIES TO:

JD Edwards EnterpriseOne Procurement and Subcontract Management - Version XE and later

JD Edwards EnterpriseOne Requisition Self Service - Version 9.2 to 9.2 [Release 9.2]

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Information in this document applies to any platform.

PURPOSE

Overview

Tolerance rules are used to define how much a line’s quantity or amount can exceed those on the PO (purchase order) or
receipt before the system returns an error. Because you can do a partial receipt, the system does not check for quantities
or amounts lower than those on the PO or receipt. Tolerance rules can be applied to Receipts (P4312), Voucher Match
(P4314) and Purchase Orders generated through a Requisition or Blanket release (P43060). Tolerance can also be
checked when a supplier acknowledges an order in self service using Purchase Order Acknowledgement (P43S01).

If doing receipts (P4312), the tolerance is checked against the quantities and amounts on the order. (F4311) If doing
three way voucher match, the quantities and amounts are checked against the receipts being matched. (F43121)

The amount for Tolerance can also be checked when a supplier acknowledges an order in self service using Purchase Order
Acknowledgement (P43S01).

DETAILS

Tolerance Checking by Quantity, Unit Cost or Extended Amount

Tolerance Rules are specific to Item Number, Commodity Class or Company. In the Tolerance Rules (P4322) program in
menu G43A41, define the limit of Quantity, Unit Cost or Extended Cost beyond which the system will not accept an order.
Tolerance rules are defined by Function Type (UDC 43/FT).

The default values are as follows:

1. Voucher Match (P4314)

2. Receipts (P4312)
3. PO Blanket/Requisition (P43060)
4. PO Acknowledgement (P43S01)

The first column in Tolerance Rules (P4322) shows the specific Function Type:

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By selecting on an existing tolerance rule, or by clicking ‘Add’, the following screen will be displayed and can be edited. The
setup below simply states that any PO receipt done within company 00001 is subject to a 30 percent tolerance rule with
regard to Unit Cost. Therefore, if tolerance checking is activated in the processing options behind PO Receipts (P4312),
changes to the Unit Cost of the item being received will be subject to this rule.

If more than one field has a value, the system will display an error as soon as one of the items exceeds its limit. The
system will compare values in the order in which they are displayed on the screen, starting with Quantity/Tolerance
Percentage. Processing Options behind Receipt (P4312), Voucher Match (P0411/P4314) and Purchase Order Generation
(P43060) must be flagged for Tolerance Checking to take effect. If the tolerance is exceeded, error 'Value Exceeds

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Tolerance' (2691) is given preventing entry or 'Value Exceeds Tolerance' (2692) is given as a warning. An additional error
that can be received during Voucher Match is 'Value Exceeds Tolerance' (2837).

Tolerance Checking by Receipt Date

The Receipt (P4312) program allows Tolerance Checking on receipt date by flagging Processing Option #2 on the
Tolerance tab.

In the Receipt/Routing Analysis (P43090) input the number of days that a shipment is allowed early and late.

The Receipt (P4312) program calculates the difference in the number of days between the Receipt Date (RCDJ) and the
Promised Date (PDDJ) and compares the information to the Supplier/Item Relationships (F43090) record. If the days are
outside of the allowed range, and the processing option is set with a '1,' a warning message is returned. If the processing
option is set with a '2', a hard error is returned. If the tolerance is exceeded, error 'Receipt Date Outside Promised Date
Range' (3824) will be displayed.
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Note: To perform Purchase Receipt (P4312) with receipt routing activated and tolerance checking turned off at the
processing option, over receipt is processed and entered the first step of the route. When performing the movement into
stock via Movement and Disposition (P43250) with tolerance checking activated at the associated P4312 version defined at
P43250 processing option, there is no error/warning for the over receipt. The system is hard coded so that the tolerance
check is done before an item enters routing at P4312. Once the item has been received through P4312 after the item
enters the route, no tolerance check will be activated although processing option of P43250 has the version of P4312
activated with tolerance checking. This is working as designed.

Specifying No Tolerance

To prevent the system from allowing any tolerance, check the Zero Tolerance field next to units and/or amount fields in the
Tolerance Rules (P4322) program.

Item Exception Tolerance Example

This will show steps to setup a voucher match tolerance for everything except for a specific item.

Setup the Tolerance Rules, specific for a company.

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Enter a purchase order.

Receive the order changing the quantity to 2, tolerance is checked.

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Now Setup the tolerance rule for a specific item. Note: The Item does not have any Tolerance Percentages, or Units
specified.

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Enter another purchase order, this time for the item specific tolerance rule.

Enter to receive it, changing the quantity to be received to 2.

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The order is received successfully. The tolerance was not checked because the item specific tolerance acts like an
exception.

Placing a Voucher on Hold that Exceeds the Tolerance

It is possible to setup Voucher Match (P4314) so that if a voucher exceeds the tolerance limit, the tolerance warning will
appear AND the Pay Status Code on the Voucher is set to a non approved status such as "H" (On Hold).

Simply set Process Tab Option #6 (Tolerance) to a Pay Status Code other than "A" (Approved) such as "H" . Voucher Match
(P4314) will then issue a Warning and Set Payment Status to “H” so that the voucher cannot be scheduled for payment
without first being reviewed and approved.

The system has a similar behavior also for the pay status "V" (Held/Variance in Receipt Match) set in the #6 (Tolerance).

Frequently Asked Questions

Question 1 - We need to prevent over-receipt of goods into a specific branch/plant. Tolerance rules can be set by
item number, commodity class and company. There is one company with multiple branch/plants - how does one
set the system to not allow over receipts of items in this branch/plant?

Answer 1 - Setup a Tolerance Rule for a Function Type of 2 (Receipts) for either the specific Company or Item. Create a
version of Receipts (P4312) that will be used only for branches that need to do tolerance checking and set the processing
option on the Tolerance tab to issue a warning or error. All other branches can use a version of Receipts program with the
Tolerance processing options set to blank.

Question 2 - Can Tolerance Rules (P4322) be set up by Order Type?

Answer 2 - No, Tolerance Rules (P4322) entries cannot be created by Order Type. However, tolerance can be checked by
Order Type. This is accomplished by creating different versions of P4312 by Order Type when processing stock items other
than non-stock. The version available to users in the menus used for stock items will have the default Order Type set for
Stock Orders and will have tolerance checking activated in the processing option and the version for non-stock does not.
This will effectively allow tolerance to be checked by order type.

Question 3 - What business function is used to check tolerance rules in purchasing?

Answer 3 - B4300030 - EditPurchasingToleranceRules.

Question 4 - What is the Maximum Value for Tolerance Quantity?

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Answer 4 - 999999999

Question 5 - If the Quantity Ordered is a negative value how is Tolerance checking performed?

Answer 5 - If the Original Quantity Ordered is less than zero, the tolerance amount will be checked as a basis from 'zero'.
That is to say: with a positive order quantity tolerance is checked when a line is over the original, while an order with a
negative order quantity will have tolerance checked when the line is below the original. The tolerance is checked when a
line percentage/units/amount is further from zero than allowed in P4322 Tolerance Rule setup.

For example:

1. Setup a Type 2 tolerance rule for Quantity 'Tolerance Units' = 5.

2. Enter a purchase order for a negative quantity: (-10).
3. Receive the order with P4312 set to check tolerance:

Any quantity received between 0 and (-10) will have no tolerance error.
Any quantity received between (-10) and (-15) will have no tolerance error.
Any quantity received less than (-15) will result in a tolerance error.

Question 6 - If Tolerance Quantity or Percent is bigger than 999999999 what will occur?

Answer 6 - Tolerance Quantity or Percent greater than 999999999 will be considered Zero Tolerance. PO Receipt Quantity
will have to match Purchase Order Quantity.

Question 7 - What is the value set in determining Zero Tolerance?

Answer 7 - It depends on display decimal point of QTYINV class item if Zero Tolerance is per quantity. For example,
display decimal point is 5 then the tolerance quantity will appear as 9999999999.99999 which is the largest number which
column [Link] can hold.

Question 8 - When setting Zero Tolerance, why is the value not simply 0?

Answer 8 - Because Maximum Value for Tolerance is 999999999 so any value which is bigger than this will be considered
as Zero Tolerance.

Question 9: : Can a hold code be placed on the voucher if it exceeds the tolerance limit?

Answer 9: This can be achieved by populating the valid Hold Code in the Processing Option for Tolerance checking (# 6).
You can specify pay status (e.g., H) to have the Voucher held though exiting values for this processing option in addition to
Blank, 1 or 2.

Question 10 : In case of a foreign purchase order, what amounts will be compared with tolerance threshold:
domestic or foreign?

Answer 10: In releases prior to 9.2, the tolerance checking is done based on the Domestic Amount on the purchase
order. In 9.2, the PO Receipts program has been improved to enable users to specify whether the system should perform
tolerance limit inspection on the foreign or domestic amount when receiving an order that has a variance in the exchange
rate. This change enables receiving agents to apply exchange rate variances on orders that are kept open as a reference
for the prepayment of the item until the item is received and ensures that related financial data is captured accurately.
See 1683648.1

Question 11: When a tolerance is setup for PO Receipts, the error is issued if the unit cost of the receipt exceeds
the PO cost by more than the tolerance percent but not if the unit cost of the receipt is less than the PO cost by
more than the tolerance percent. Is this working as designed?

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Answer 11: Yes, this is working as designed. The user should be allowed to receive something at a lower cost than what
was on the purchase order, even if tolerance checking is on. If the vendor is willing to accept a lower price, the user should
be able to receive it and take advantage of the cost savings even if the tolerance percentage is exceeded.

Question 12: Tolerance checking can be done on three levels, company, commodity class, or item. How is the
commodity class retrieved?

Answer 12: If the item is a stock item, the Item Branch Commodity Class is used. If the item is non-stock and has an
item master, the Item Master Commodity Class is used.

Question 13: If the tolerance checking is set on all three levels: company, commodity class and item; which value
will the system use during voucher match?

Answer 13: The system will try to use the most specific tolerance.
If a tolerance is set up for the Item number, it will be used, otherwise the system will check for the Commodity Class set
up. If no tolerance is set for the Commodity Class, it will use the one set up for the Company.

Example:
When tolerance is set by Item Number, Commodity class and Company, the system will use the tolerance set up for the
Item number.
When tolerance is set by Commodity class and Company, the system will use the tolerance set up for the Commodity class.

Question 14: Having tolerance checking activated, how to put the vouchers that exceeds tolerance rules on pay
status = H (hold)?

Answer 14: During Voucher Match (P4314/P0411), specify that the system assign a pay status code to lines exceeding
tolerance.
Set the processing options in P4314 as follows :
Processing Option #6 on the Process tab Tolerance to H (not blank, 1 or 2 as explained in the description)

Question 15: Are all Tolerance rule types available for voucher match (Quantity, Unit Cost and Extended
Amount)? Or is it only for Extended Amount ?

Answer 15: All 3 should work when using 2 way voucher match (i.e. Quantity, Unit Cost and Extended Amount.)
Tolerances should be valid with 2 way match. 2 or 3 way match and line type/inventory interface impact tolerance. You
cannot over voucher quantity for stock. The error from that is completely separate from tolerance checking and you would
receive the error without tolerance checking activated.

Question 16: Is Tolerance Checking supported with Voucher Re-cost?

Answer 16: Currently, Tolerance Checking is not supported with Voucher Re-cost. The Re-cost functionality is very basic
and is intended to be used on rare occasions.

Question 16: Why does the R470412 EDI Inbound 810 still create a PV if Tolerance Checking is set up in the
P4322?

Answer 16: In the R470412 Inbound 810, the version of P4314 Voucher Match called has the processing option in the
Process Tab for Tolerance Checking flagged = 1 for a warning instead of a hard error.

The Batch program will give a warning if the Flag = 1, but still create the Invoice (PV). If you want a hard stop by the
program, set the flag = 2 for a hard error in EDI.

Question 17: How is the tolerance calculation related to quantity performed during P43060 release when partial
quantity has previously been released for a line?

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Answer 17: Quantity tolerance during P43060 release will always look at the Original Quantity for an order line. e.g. 2600
Original Qty + 260 (10% tolerance) = 2860. No matter how many partial releases have been done, you will be able to
cumulatively generate up to 2860 without error/warning. An exceeds tolerance message would only be triggered at 2861
cumulative.

Question 18: Is the tolerance checked within receipt routing?

Answer 18: The system is hard coded so that the tolerance check is done before an item enters routing at PO Receipts
(P4312). Once the item has been received through P4312 and the item enters the route, no tolerance check will be
triggered although processing option of P43250 has the version of P4312 activated with tolerance checking. This is working
as designed.

In addition, the over receipt is not allowed once the order is already in routing. The error Overshipment Not Allowed (Error
ID 2717) will be displayed. This error is completely separate from tolerance checking.

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