Tolerance settings

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.

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.

Is anyone doing anything with quantity tolerances?

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.

Hello Jon: I've been trying to set a tolerance for some time now.  Is there a particular form in Lawson you recommend to use when doing this?  Or do you have process you follow you can share?

 

Thanks,

Ted 

Hello Jon: I've been trying to set a tolerance for some time now.  Is there a particular form in Lawson you recommend to use when doing this?  Or do you have process you follow you can share?

 

Thanks,

Ted