3052672 - Tolerance key VP in Supplier Invoice Processing

A tolerance limit has been configured for tolerance key VP (Moving average price variance), but when processing supplier invoices, there is no message triggered if the tolerance limit is exceeded. It is not clear how this tolerance key works.

SAP S/4 HANA Cloud

1. Tolerance limits are configured in the app "Manage your solution" under SSCUI 101947 "Set Tolerance Limits" .

There is a separate line for each company code/tolerance key combination. If the specific combination of company code/tolerance key has not been maintained yet, this can be done by clicking on the "New entries" menu:

 

If there is an available entry for the company code/tolerance key combination, the clicking on "Details" brings up a new screen where it is possible to define upper or lower limits:

2. Next, it is necessary to maintain the error messages that are going to be issued when the tolerance limit is exceeded. This is also done in the "Manage your solution" app, under SSCUI 102091 "Define Message Types for Area M8". The messages to be set up here are M8784, M8785, or M8786 depending on the time period:

The configuration help for SSCUI 101947 provides the below information about tolerance key VP:

"When a stock posting line is created as a result of an invoice item, the system calculates the new moving average price that results from the posting. It compares the percentage variance of the new moving average price to the old price using the percentage tolerance limits defined."

In practice, this can be demonstrated with the following example:

In case of material Abc in the current period there are 10 pieces of this material on stock, each of these valuated at a moving average price of 1000 EUR, resulting in an inventory value of 10.000 EUR. This information can be viewed in the Display material app, under the Account 1 view.

An invoice arrives for this 10 pieces, but the price is 1200 EUR/piece. This will increase the inventory value to 12000 EUR, and with this the moving average price is going to increase to 1200 per piece as well. This means a 20% increase in the MAP, and if the upper limit of the moving average price tolerance was defined as 10% previously, then the error message is issued.

For the error message to be issued, the new moving average price resulting from the invoice posting has to exceed the old one by more than the maintained tolerance limit.

Tolerance key, VP, Moving average price, Invoice , KBA , MM-FIO-IV , Fiori UI for Invoice Verification , How To

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