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Last Post 12/15/2017 8:49 AM by  Kat V
Tolerances
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lars
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01/07/2015 8:00 AM

    I work in an environment where no tolerances are set within Lawson.

    That means if a $10,000.00 order, for product or service  is off, even by 1 cent, a change order is required.

    Recent events have made this no tolerance policy questioned.

    What do others have their tolerance settings at?

    Are there any statistics out there that show having no tolerance is not cost efficient?

    Thank you.

     

    JonA
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    01/07/2015 9:03 AM
    When we first went live tolerance was set at 0. We quickly found out that this was causing a lot of extra work for the buyers and AP. Currently we have match tolerance for cost set at $.02 (over and under) and PO cost message tolerance set at $.02 also (over and under). I believe we had it set at $5.00 at one time but Contracts balked at this and wanted it lowered.
    Jon Athey - Supply Chain Analyst - Materials Management - MidMichigan Health
    lars
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    01/07/2015 9:28 AM

    Thanks for your quick reply.

    Followup question- what if you bought a piece of hardware or equipment for $20,000.00. Would that 2 cents still apply?

     

    Ike_Duran
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    12/14/2017 12:57 PM

    Hi Jon, 

     

    We are looking at resetting our AP tolerances and we are looking at doing 4% with a $20 threshold.  Any thoughts on why you went with a straight dollar tolerance vs using a % and $? 

    Kat V
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    12/14/2017 2:06 PM
    I'm not Jon, but our organization didn't like the % because 5% on a $5.00 PO is one thing and 5% on a $1,000,000.00 PO is waaaay not OK.
    Ike_Duran
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    12/14/2017 10:34 PM

    Thanks for the response Kat, So you only went with a $ threshold, would you mind sending me a snapshot of how you have it set up?

     

    Thanks & Happy Holidays -Ike

    Kat V
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    12/15/2017 8:49 AM
    I'm SCM and we do not have access to the screen, we only review it during upgrades. Sorry! I want to say we're at 5 or 10 cents
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