Invoice tolerance in oracle apps r12 : Setup of Invoice tolerance in oracle Payables

Invoice tolerance in oracle apps r12 : Setup of Invoice tolerance in oracle Payables

 

Invoice tolerance is the Important Setup in Oracle Payables. This Determines whether the System will put the Matching Hold or Tax Hold in the Oracle Payables Invoices. We do Invoice Tolerance setup on two levels (Invoice Matching Level and Invoice Tax Level). Invoice tolerance is the maximum tolerance limit specified for invoice when we are match the invoice with Purchase Order or with Purchase Receiving and tolerance limit specified for invoice tax also. So for example, If we have matched one invoice with Purchase Order, In the Invoice Lines, My PO qty is 30 but my Bill qty in the Invoice lines is 42 and I have set the Invoice tolerance for Maximum/Quantity Ordered is very low for example 2% then system will put the hold for this Invoice because Bill qty is too higher than the Actual Ordered qty so this is the setup of Invoice Tolerance in PO matching.

For Invoice Tolerance for taxes, we can put the maximum limit for the Tax amount on the basis of Invoice amount so by this way we can put hold on that invoices whose tax amount calculated beyond the limits.

Use the Invoice Tolerances window to define the matching and tax tolerances you want to allow for variances between invoice, purchase order, receipt, and tax information. You can define both percentage-based and amount-based tolerances.

Tolerances determine whether Payables places matching or tax holds on an invoice. When you submit Approval for an invoice you have matched to a purchase order, Payables checks that the invoice matches the purchase order within the matching tolerances you define. When you submit Approval for an invoice with a tax amount, Payables checks that the actual invoice tax amount equals the calculated tax amount within the tolerances you define.

 

Setup of Invoice tolerance in oracle Payables r12

 

Step1:- Go to Payable Manager

Setup ==> Invoice ==> Tolerances

  

Step2:- Create the New Tolerance Template Name and then assign this Template in the Payables Options.

 

If you enter a zero for a percentage tolerance and enable the check box for that tolerance, Payables treats the tolerance as infinite and will never apply a the corresponding hold to the invoice. If you want a low tolerance, you can enter a very small percentage.