<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000011" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">To define tolerated price differences</Title>
		<Keyword><Level1>price differences</Level1>
			<Level2>defining tolerances</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>When matching receipts with purchase invoices, you can tolerate a certain difference in price between the two. You can define a maximum <Link href="/baanerp/tf/glossary/glossary#000024" role="glossary">price difference</Link> amount and a maximum difference percentage for invoices.</Paragraph>
		<List><ListIntro>You can define tolerated price differences for:</ListIntro>
			<ListItem>Automatic matching, in the <GUIRef href="/baanerp/tf/acp/tfacp0100s000" role="session">ACP Parameters (tfacp0100s000)</GUIRef> session (global tolerances)</ListItem>
			<ListItem>Automatic matching, in the <GUIRef href="/baanerp/tf/acp/tfacp0107m000" role="session">Automatic Matching Tolerances by Invoice-from BP (tfacp0107m000)</GUIRef> session (by business partner)</ListItem>
			<ListItem>Manual matching, in the <GUIRef href="/baanerp/tf/acp/tfacp0150m000" role="session">Price Difference Tolerances (tfacp0150m000)</GUIRef> session (by employee)</ListItem>
		</List>
		<Paragraph>SSA ERP allows you to use price difference tolerances for automatic matching of purchase invoices. You can define these tolerances, for each <Link href="/baanerp/tc/glossary/glossary#InvoicefrBus.tc" role="glossary">invoice-from business partner</Link>, in the <GUIRef href="/baanerp/tf/acp/tfacp0107m000" role="session">Automatic Matching Tolerances by Invoice-from BP (tfacp0107m000)</GUIRef> session. If you do not define the tolerances in this session, the automatic matching procedure uses the default parameters from the <GUIRef href="/baanerp/tf/acp/tfacp0100s000" role="session">ACP Parameters (tfacp0100s000)</GUIRef> session. If you do not define the tolerances in either of these sessions, the automatic matching procedure does not match invoices when a price difference is found.</Paragraph>
		<Paragraph>For manual purchase invoice matching, you must define tolerated price differences per employee in the <GUIRef href="/baanerp/tf/acp/tfacp0150m000" role="session">Price Difference Tolerances (tfacp0150m000)</GUIRef> session. When employees match invoices, they each have a certain authorization regarding the approval of price differences.</Paragraph>
		<Paragraph>If a price difference occurs, SSA ERP checks whether the difference amount falls within the tolerances that are specified for the employee, the invoice-from business partner, or in the ACP parameters. The invoice can only be matched if it falls within the defined tolerance range.</Paragraph>
		<Paragraph>If a difference that falls within the tolerances between the invoice amount and the matched amount is found, it is regarded as a price difference. The difference is booked using the ledger account and dimensions specified for price differences in the <GUIRef href="/baanerp/tf/acp/tfacp0111m000" role="session">Ledger Accounts by Business Partner Group (tfacp0111m000)</GUIRef> session.</Paragraph>
		<Paragraph>If one of the tolerances that apply is exceeded, an authorized employee can approve the price difference by using the <GUIRef href="/baanerp/tf/acp/tfacp1142m000" role="session">Approve Price Differences (tfacp1142m000)</GUIRef> session. Afterwards, the automatic or manual matching procedure can be resumed.</Paragraph>
		<ExampleSection><SectionTitle>Example</SectionTitle>
			<Paragraph>You have ordered 100 items at a price of USD 10.50 a piece. The price on the invoice you receive is USD 10. Regarding the employee's tolerances for the invoice price differences, you entered the following values in the <GUIRef href="/baanerp/tf/acp/tfacp0150m000" role="session">Price Difference Tolerances (tfacp0150m000)</GUIRef> session:</Paragraph>
		</ExampleSection>
		<TABLE border="1"><TBODY><TR><TH colspan="2">Invoice price lower than expected</TH>
					<TH colspan="2">Invoice price higher that expected</TH>
				</TR>
				<TR><TH>Percentage</TH>
					<TH>Amount</TH>
					<TH>Percentage</TH>
					<TH>Amount</TH>
				</TR>
				<TR><TD>4%</TD>
					<TD>80</TD>
					<TD>1%</TD>
					<TD>15</TD>
				</TR>
			</TBODY>
		</TABLE>
		<Paragraph>The resulting price difference is positive. This means that the conditions that belong to the category Invoice price lower than expected apply. The price difference is:</Paragraph>
		<Paragraph>Absolute amounts: 10.50 - 10 x 100 = USD 50 This amount is lower than USD 80. If the margin recorded for the percentage is not exceeded, the employee can approve the invoice.</Paragraph>
		<Paragraph>Percentage:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">10.50 - 10
------------ x 100% = 5% 
    10 </Paragraph>
		</Formula>
		<Paragraph>This percentage is higher than the percentage allowed for this employee. This employee cannot approve the price difference (although the amount is lower than the specified tolerated value).</Paragraph>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000104" role="manual">To process purchase invoices</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000019" role="manual">Example of price difference and booking variance</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
