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Tolerance settings
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Tolerance settings
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Larry
New Member
Posts: 2
9/17/2013 11:57 AM
I am curious what others use for tolerance settings for products that are three-way matched, over and under the amount listed on the PO.
My manager, when she first started, insisted on zero tolerance.
Well, that setting soon changed when buyer messages were coming in faster then planes landing at O'hare Field in Chicago.
JonA
Veteran Member
Posts: 1162
9/17/2013 1:07 PM
We were at a $2.00 tolerance at one time. Our tolerances are currently set at $.02 per the request of our contracts team. They wanted 0 tolerance but we found that many of the cost messages were due to rounding because Purchasing goes out to 4 decimals for cost and AP and most invoices only go to 2 decimals. One buyer (Nursing/Maintenance/Biomed) has about 280 cost messages per month on average. Our OR/Cath Lab/Interventional buyer has about 205 per month on average. If the PO line is on contract the buyer just forwards the message to contracts to handle. About 180 messages per month are sent to contracts.
Michelle Wetzel
Veteran Member
Posts: 183
10/22/2013 5:32 PM
We sit at $5 or 10% for invoices that are over and zero percent for invoices that are under. We also compromised on 3 decimels throughout the system. The only time we have an issue is for the one or two companies out there that go to 5.
brupp
Veteran Member
Posts: 165
11/6/2013 8:11 PM
Is anyone doing anything with quantity tolerances?
Stephanie
Veteran Member
Posts: 86
12/19/2013 3:05 PM
We are currently using 25$ or 25% for invoicing. We currently are not using quantity tollerances yet but have been gathering some metrics to see if it is worth it in the future.
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