Last Updated on August 13, 2022 by admin

How to Maintain Tolerance Limits for Price Variance in SAP S4Hana

When you are posting a purchase order document, the system checks the price of PO items and the valuation price stored in the material master record. When price variance exceeds a tolerance limit, the system gives a warning message. So it is a mandatory configuration to maintain tolerance limits for price variance in Purchase Order items.

In this activity, we are going to maintain the tolerance limits for price variance in SAP.

You can set tolerance limits for price variance by using the following navigation method.

  • Transaction code: SPRO
  • SAP R/3 IMG Path: – SPRO -> IMG -> Materials Management -> Purchasing -> Purchase Order -> Set Tolerance Limits for Price Variance 

Refer to the below step-by-step procedure to define tolerance limits for price variance purchasing.

Step 1: Follow the IMG menu path and click on Set Tolerance Limits for Price Variance

Set Tolerance Limits for Price Variance

Step 2: One the change view “tolerance limits” overview screen, Select “new entries”

  • Standard SAP provides tolerance keys PE (price variance purchasing and SE (Maximum cash disc. the deduction, (purchasing))
  • Select tolerance key: PE  – Prince Variance: Purchasing
  • Enter your company code: AD06 – Adarsh Technologies
  • Update tolerance limit percentage – Update Lower Limit Percentage and Upper Limit Percentage

Set Tolerance Limits for Price Variance entries

After updating the data, choose the save button to save the data in the SAP system.

Successfully we have maintained tolerance limits for price variance purchasing in SAP.