Setup Order Tolerances

Using the Advanced Administration Application, you can:

• View Tolerances
• New Order Tolerance
• Edit Tolerance
• Delete Tolerance

Order Tolerances allow automatic order processing to continue even when there are minor price discrepancies, for example:

1. A user adds two boxes of an item, costing $5.55/box, to their Shopping Cart,
2. The Procurement application creates an Order, adds this and other items, and sends it to a supplier, via an e-marketplace,
3. The supplier checks the item's price and finds it to be $5.57/box,
4. The supplier checks availability and finds that only one box is available for immediate shipment.

Without tolerances, a supplier must cancel the entire order, delaying to purchase of this and other items in the Order. With order tolerances:

5. The Commerce One Procurement software compares the difference in price between current order amd Supplier Update with the tolerances you have specified:
• If the differences are more than the permitted tolerance, the Supplier Update has a pending buyer response. The buyer can accept or reject by creating a Change Request or cancelling the request.
• If the differences are less than the permitted tolerance, the order proceeds and the item is shipped,
6. One box of the item can be shipped at an adjusted price,
7. A second box is back-ordered for later shipment.

Tolerances can be set as:

• Currency amounts, such as plus/minus $0.50
• Percentages of the item price, such as plus/minus 5.0%
• Quantities, such as plus/minus 5 boxes (or the appropriate UOM of the item)
• Percentage of the ordered quantity, such as plus/minus 5.0%
• Zero tolerance
• No limit

Tolerances can be associated with a Buying Organization for each commodity. Enter the Order Tolerance name and enter the following in the appropriate fields:

Field	Description
Order Tolerance Name	Name for the tolerance.
Unit Price Type	Tolerance types include: No Limits - The system processes all orders regardless of any price discrepancies. Percentage Tolerance - The system accepts discrepancy within a designated percentage range, for example see note below. Relative Tolerance - The system accepts a price discrepancy within a designated number of units, for example this type see note below. Zero Tolerance - The system rejects orders with any price discrepancies.
Order Quantity Type	Tolerance for discrepancies between quantity ordered and the quantity the supplier can deliver. Tolerance types include: No Limits - The system processes all orders regardless of any quantity discrepancies. Percentage Tolerance - The system accepts quantity discrepancy within a designated percentage range, for example choose this type see note below. Relative Tolerance - The system accepts discrepancy within a designated number of units, for example see note below. Zero Tolerance - The system rejects orders with any discrepancies.
Back Order Quantity Type	Tolerance for discrepancies between quantity ordered and the quantity on back order. Tolerance types include: No Limits - The system processes all orders regardless of any quantity discrepancies. Percentage Tolerance - The system accepts a quantity discrepancy within a designated percentage range, for example choose this type see note below. Relative Tolerance - The system accepts a quantity discrepancy within a designated unit amount, for example type see note below. Zero Tolerance - The system rejects orders with any quantity discrepancy.
Shipping Days Type	No Limits - The system processes all orders regardless of the shipping date. Relative Tolerance - The system accepts an order provided the shipment transit time is within a specified number of days, for example 5£ shipping days £10. If you choose this type see note below.

Note: If you have chosen Relative or Percentage Tolerance you will see additional options to be filled in:

Field	Description of Percentage and Relative Tolerance Options
Unit Price Type	Unit Price Below and Above - This is the amount (percentage or absolute) that the final unit price can differ from the price at the time the order originated.
Order Quantity Type	Order Quantity Above and Below -This is the amount the quantity can differ from the quantity at the time the order originated.
Back Order Quantity Type	Back Order Quantity Max - This is the maximum units of the object ordered that can be placed on back order.
Shipping Days Type	Shipping Days Max and Min - Indicates the number of days the order can be in transit from supplier to buyer. As long as the supplier ships the order within a range of days prior to the DeliverByDate, the order is acceptable.