How to Set Tolerance Limits for Price Variance in SAP

This SAP article will guide you all about “How to Set Tolerance Limits for Price Variance in SAP” step by step with screenshots.

In this step, you define the tolerance limits for price variances.

When processing a purchase order, the system checks whether the effective price of a PO item shows variances compared with the valuation price stored in the material master record. In addition, it checks whether the specified cash discount value is admissible.

Variances are allowed within the framework of tolerance limits. If a variance exceeds a tolerance limit, the system issues a warning or error message.

In the SAP System, the types of variance are represented by the tolerance keys. For each tolerance key, you can define percentage and value-dependent upper and lower limits per company code.

Standard Settings

The standard SAP System supplied contains the following tolerance keys:

• PE Price variance, Purchasing


• Tolerance limit for system message no. 207. This message appears if the specified effective price exceeds the predefined tolerances when compared with the material price.


• SE Maximum cash discount deduction, Purchasing


• Tolerance limit for system message no. 231. This is a warning message, which appears when the specified cash discount percentage exceeds the predefined tolerances.

Steps to Set Tolerance Limits for Price Variance in SAP

SAP R/3 IMG Path:- SPRO -> IMG -> Materials Management -> Purchasing -> Purchase Order -> Set Tolerance Limits for Price Variance

Step 1:- Follow the main path and click “Set Tolerance Limits for Price Variance”

Step 2:- One the change view “tolerance limits” overview screen, Select “new entries” and follow the below steps

• Standard SAP provides tow tolerance keys PE (price variance purchasing and SE (Maximum cash disc. deduction, (purchasing))


• Select tolerance key


• Enter your company code


• Update tolerance limit percentage

 

Step 3:- After updating the data, choose save button to save the data.

Now, we have successfully done with “How to Set Tolerance Limits for Price Variance in SAP”.

 

 

How to Set Tolerance Limits for Price Variance in SAP