Invoice Block (Maintain Tolerance Limit)

Payment blocks used to block invoices for automatic payment. Payment blocks apply to all company codes. When entering an invoice, the user can enter a payment block; the invoice is then only paid once the payment block has been deleted. Path:- MM - Logistics Invoice Verification - Invoice Block - Determine Payment Block T.code OMR9 Maintain Reasons for blocking payment.

Set Tolerance Limits

In this step, you specify the tolerance limits for each tolerance key for each company code. When processing an invoice, the R/3 System checks each item for variances between the invoice and the purchase order or goods receipt. The different types of variances are defined in tolerance keys. T.code OMR6

Tolerance Keys

AN: Amount for item without order reference If you activate the item amount check, the system checks every line item in an invoice with no order reference against the absolute upper limit defined.

AP: Amount for item with order reference If you activate the item amount check, the system checks specific line items in an invoice with order reference against the absolute upper limit defined. Which invoice items are checked depends on how you configure the item amount check. Example:- Amount in PO Rs. 10 x 100 Q = Rs. 1000/During Invoicing Rs. 9.50 x 100 Q = Rs. 950/Hence Block for payment if upper limit is 5 %.

DW: Quantity variance when GR quantity = zero If a goods receipt is defined for an order item but none has as yet been posted, the system multiplies the net order price by (quantity invoiced + total quantity invoiced so far). The system then compares the outcome with the absolute upper tolerance limit defined. Example:- If MIRO is going to happen without goods receipt , then vendor is block for payment.

BD: Form small differences automatically The system checks the balance of the invoice against the absolute upper limit defined. If the upper limit is not exceeded, the system automatically creates a posting line called Expense/Income from Small Differences, making the balance zero and allowing the system to post the document. Example:- Invoice Rs. 1000 , Upper Limit is 2 % It means upto 2% of the invoice amount system automatically posts to the expense / income account.

BR: Percentage OPUn variance (IR before GR) The system calculates the percentage variance between the following ratios: quantity invoiced in order price quantity units : quantity invoiced in order units and quantity ordered in order price quantity units : quantity ordered in order units. The system compares the variance with the upper and lower percentage tolerance limits.

BW: Percentage OPUn variance (GR before IR) The system calculates the percentage variance between the following ratios: quantity invoiced in order price quantity units: quantity invoiced in order units and goods receipt quantity in order price quantity units : goods receipt quantity in order units. The system compares the variance with the upper and lower percentage limits defined.

PP: Price variance The system determines by how much each invoice item varies from the product of quantity invoiced * order price. It then compares the variance with the upper and lower limits defined

Example:- Item 1 Rs. 10/-, Item 2 Rs. 8/- in PO (and at the time of invoicing system checks every line item with the PO.) During MIRO Item 1 Rs. 10/- and Item 2 is Rs. 10/- System block this invoice because of price variance.

Stochastic Block
In this unit, you configure the system settings for the stochastic block. This consists of two functions:

Activate This specifies the company codes in which the stochastic block is used.

Set This specifies the degree of probability that an invoice is stochastically blocked.

T.code OMRF (For Activate)

T.code OMRG (For set Limit) You determine for each company code the degree of probability that an invoice will be stochastically blocked. The degree of probability depends on the invoice value.