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<ManualTopic ID="/baanerp/tf/onlinemanual/000011" xml:lang="en">
   <Header>
      <Title>Authorization of price differences and additional costs</Title>
      <Keyword type="header" order="d1e1628116">
         <Level1>Purchase invoices</Level1>
         <Level2>price differences</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1628121">
         <Level1>Purchase invoices</Level1>
         <Level2>additional costs</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>Price differences occur if the invoice amount
		differs from the order amount or the receipt amount. LN detects the price
		differences when the invoice is matched to the purchase orders or to the
		receipts.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Price differences in automatic matching</SectionTitle>
      <List>
         <ListIntro>For automatic matching, you can define the tolerated price
		  differences in the following sessions:</ListIntro>
         <ListItemHead> 
            <GUIRef href="/baanerp/tf/acp/tfacp0100m000" role="session">ACP Parameters (tfacp0100m000)</GUIRef>
         </ListItemHead>
         <ListItem>In this session, you can define global tolerances for automatic
		  matching.</ListItem>
         <ListItemHead> 
            <GUIRef href="/baanerp/tf/acp/tfacp0107m000" role="session">Automatic Matching Tolerances by Invoice-from BP (tfacp0107m000)</GUIRef>
         </ListItemHead>
         <ListItem>In this session, you can define tolerances by invoice-from
		  business partner, for automatic matching. For business partners for which you
		  do not define tolerances in this session, LN uses the tolerances
		  you define in the <GUIRef href="/baanerp/tf/acp/tfacp0100m000" role="session">ACP Parameters (tfacp0100m000)</GUIRef> session.</ListItem>
      </List>
      <Paragraph>You can define a maximum tolerated price
		difference amount and a maximum difference percentage, or you can assign full
		authorization. For details, refer to <Link href="/baanerp/tf/onlinemanual/000496" role="manual">To use full authorization</Link>. 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. An authorized user must manually authorize the price
		difference and the additional costs.</Paragraph>
      <Paragraph>During automatic matching of invoices, LN compares the <Link href="/baanerp/tf/glossary/glossary#000024" role="glossary">price difference</Link> with the tolerated differences. If the difference falls
		within the defined tolerances for the invoice amount <Emphasis>and</Emphasis> the percentage, LN matches the invoice. The price difference is posted to the <GUIRef href="/baanerp/tf/domains/acp.tran#price.diff" role="option">Price Differences</GUIRef> control account and dimensions of the financial business
		partner group</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To approve price differences</SectionTitle>
      <Paragraph>Use the <GUIRef href="/baanerp/tf/acp/tfacp0150m000" role="session">Purchase Invoice Authorizations (tfacp0150m000)</GUIRef> session to authorize specific users to
		approve price differences and to create additional costs transactions. For each
		user, you can define the maximum price difference they can approve, or you can
		assign full authorization to a user.</Paragraph>
      <Paragraph>In the <GUIRef href="/baanerp/tf/acp/tfacp0130m000" role="session">Assigned Approvers (tfacp0130m000)</GUIRef> session, create assigned approvers for the authorized
		users. You can define each individual authorized user as an assigned approver,
		or you can create a single assigned approver to represent the authorized users
		of a team or a department.</Paragraph>
      <Paragraph>If during matching of a purchase invoice in the <GUIRef href="/baanerp/tf/acp/tfacp2107m000" role="session">Match/Approve Purchase Invoices (tfacp2107m000)</GUIRef> session, one of the tolerances that
		apply is exceeded, an authorized user can approve the price difference. To
		assign the invoice to an authorized user, in the <GUIRef href="/baanerp/tf/acp/tfacp2100s000" role="session">Purchase-Invoice Details (tfacp2100s000)</GUIRef> details session, enter the assigned approver
		in the <GUIRef href="/baanerp/tf/acp/tfacp1110s000#tfacp200.bref" role="manual">Assigned Approver</GUIRef> field. You can start the <GUIRef href="/baanerp/tf/acp/tfacp2100s000" role="session">Purchase-Invoice Details (tfacp2100s000)</GUIRef> details session from the LN menu of the <GUIRef href="/baanerp/tf/acp/tfacp1142m000" role="session">Authorize Purchase Invoices (tfacp1142m000)</GUIRef> session.</Paragraph>
      <Paragraph>In the <GUIRef href="/baanerp/tf/acp/tfacp1142m000" role="session">Authorize Purchase Invoices (tfacp1142m000)</GUIRef> session, a user authorized to approve the
		price difference amount must select the <GUIRef href="/baanerp/tf/acp/tfacp1142m000#tfacp102.papr" role="manual">Invoice Approved</GUIRef> check box for the invoice. Next, the
		approved invoice must again be processed in the automatic or manual matching
		and approval procedure.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To approve additional costs</SectionTitle>
      <Paragraph>For differences between the invoice amount and
		the order amount that are not caused by a price difference, authorized users
		can create <Link href="/baanerp/tf/glossary/glossary#000025" role="glossary">additional costs</Link> transactions. In the <GUIRef href="/baanerp/tf/acp/tfacp0150m000" role="session">Purchase Invoice Authorizations (tfacp0150m000)</GUIRef> session, you can define a maximum
		amount for the additional costs transactions a user can create, or you can
		assign full authorization to a user.</Paragraph>
      <ProcedureList>
         <ListIntro>To create additional costs transactions, take the following
		  steps:</ListIntro>
         <ListItem>In the <GUIRef href="/baanerp/tf/acp/tfacp1142m000" role="session">Authorize Purchase Invoices (tfacp1142m000)</GUIRef> session, on the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu click <GUIRef href="/baanerp/tf/acp/tfacp1142m000#additional.costs" role="command">Additional Costs</GUIRef>. The <GUIRef href="/baanerp/tf/acp/tfacp1133s000" role="session">Matched Purchase Invoice/Statement Line Transactions (tfacp1133s000)</GUIRef> session starts.</ListItem>
         <ListItem>Create the <Link href="/baanerp/tf/glossary/glossary#000025" role="glossary">additional costs</Link> transaction. You must enter the ledger account and dimensions for
		  each transaction.</ListItem>
      </ProcedureList>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To reassign the invoice</SectionTitle>
      <Paragraph>If the price difference or the additional costs
		exceed the matching tolerances, the invoice is not approved. You must assign
		the invoice to an authorized user. In the <GUIRef href="/baanerp/tf/acp/tfacp1110s000#tfacp200.bref" role="manual">Assigned Approver</GUIRef> field of the <GUIRef href="/baanerp/tf/acp/tfacp1110s000" role="session">Purchase Invoices (tfacp1110s000)</GUIRef> session, select an assigned approver for the purchase
		invoice.</Paragraph>
   </GeneralSection>
   <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. In the <GUIRef href="/baanerp/tf/acp/tfacp0150m000" role="session">Purchase Invoice Authorizations (tfacp0150m000)</GUIRef> session, you are authorized for the
		following price differences:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="3">
            <TR no="1" isLast="false">
               <TH colspan="2" rowspan="1">Invoice price lower than expected</TH>
               <TH colspan="2" rowspan="1">Invoice price higher than expected</TH>
            </TR>
            <TR no="2" isLast="false">
               <TH rowspan="1" colspan="1">Percentage</TH>
               <TH rowspan="1" colspan="1">Amount</TH>
               <TH rowspan="1" colspan="1">Percentage</TH>
               <TH rowspan="1" colspan="1">Amount</TH>
            </TR>
            <TR no="3" isLast="true">
               <TD rowspan="1" colspan="1">4%</TD>
               <TD rowspan="1" colspan="1">80</TD>
               <TD rowspan="1" colspan="1">1%</TD>
               <TD rowspan="1" colspan="1">15</TD>
            </TR>
         </TBODY>
      </TABLE>
      <Paragraph>The resulting price difference is positive.
		This means that the conditions that belong to the category <GUIRef href="/baanerp/tf/acp/tfacp0150m000#tfacp006.lapd" role="groupbox">Invoice Lower than Expected</GUIRef> apply. The price difference is:</Paragraph>
      <Paragraph>Absolute amounts: 10.50 x 100 - 10 x 100 = USD
		50</Paragraph>
      <Paragraph>This amount is lower than USD 80. If the margin
		recorded for the percentage is not exceeded, you can approve the invoice.</Paragraph>
      <Paragraph>Percentage: (10.50 - 10) / 10.50 x 100% = 4.76%</Paragraph>
      <Paragraph>This percentage is higher than the percentage
		allowed for this user. You cannot approve the price difference, although the
		amount is lower than the specified tolerated value.</Paragraph>
   </ExampleSection>
   <Note>
      <SectionTitle> Note</SectionTitle>
      <Paragraph>The percentage is the percentage of the price
		difference in relation to the <Emphasis>order</Emphasis> amount.</Paragraph>
   </Note>
   <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 additional costs</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>