Purchase order payment tolerance

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Posted on by Esteban Navarro

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Hello everyone,

We purchase food so the prices are quite variable. My purchase team creates Purchase Orders with one price, they send it to the vendor and the next day when the vendor delivers the price on their receipt dosen't match the one on my purchase order. The price changed suddlendy overnight

Is there a way to create a tolerance where I can put the price on the vendors recepits and the difference with my pruchase order goes to an specific account?

Thanks for the help.

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JAngle 159 on at

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If you invoice using the receipts then the variance is posted anyway. That’s just how expected and actual costs are managed. Performing your own posting could be viewed as a duplication.
Esteban Navarro 241 on at

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Hello Josh,

Thanks for the answer, could you please elaborate a bit more? I'm quite lost with this issue. Some coworkers insist that this can be done since some SAP ERP's have this functionality. But, I´ve never seen this functionality.

Thanks.
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YUN ZHU 103,676 Super User 2026 Season 2 on at

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Hi, do you have to record this difference?

If you don’t need it, you can create a Purchase Quote first, and then convert it to a Purchase Order after the price is confirmed, and then post it.

Hope this will help.

Thanks.

ZHU
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Community Member on at

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Esteban,

Adding to Josh and Yun's replies... If you are trying to track when a PO price changes between PO and Invoice, you can use the Standard Costing Method which will record the Standard Unit Price of the Item and any differences from Standard Price will book to another GL Account (Purchase Price Variance). This is the only want to break out the difference of the change into a separate GL Account.

Other than above, I can think of creating a field on the Purchase Line called Original Price and then create a Jet Report to show every Posted Purchase Invoice Original Amount vs. Posted Amount.

Hope this helps.

Thanks,

Steve
rpdp 5 on at

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I want to know where to set up a tolerance of like 2% or $100 or any combination to allow my accounts payable person the permission to pay.
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Esteban Navarro 241 on at

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Hello rpdp,

We had to create a personalization. The user puts the value in a field that according to predifined tolerance get approved or not. The difference is then added, automatically, as a line in the PO that affects a GL account.