Configuring Tolerance Limits for Amended Purchase Orders V7
By default, any changes that are made to a purchase order after it has been approved must be re-approved.
You can configure your organisation's authorisation workflow to request amended purchase orders to be re-authorised if the changes are over a set tolerance limit at the POAMEND status. This works in conjunction with any suppliers that specify their own purchase order numbers. See Processing Purchase Orders where Suppliers Provide the Purchase Order Number V7.
The following table provides some examples of how the tolerance level works:
| Original PO Value | Amended PO Value | Tolerance Limit | Action |
|---|---|---|---|
| £100.00 | £108.00 | 10% | Purchase order does not require re-approval as it is within the 10% tolerance limit. |
| £100.00 | £110.00 | 10% | Purchase order does not require re-approval as it is within the 10% tolerance limit. |
| £100.00 | £110.01 | 10% | Purchase order will require re-approval as it is over the 10% tolerance limit. |
To set up the re-approval with a tolerance level:
-
In IRIS Financials select Maintenance > Accounts from the top menu.
-
Double-click on PARAMETERS, then select POAMENDAPPR.
-
Select the Analysis fields tab then click EDIT and enter No in the Element Text field.
-
Click SAVE.
To revert all amended purchase orders to be re-approved, regardless of how small the change, set the Element Text field back to Yes.
-
Select POAMENDTOL from the left menu, then select the User fields tab.
-
In the Element Text field enter the percentage of the tolerance level required as a decimal.
For example, enter 10 to enforce a tolerance limit of 10%. This means if a change to an approved purchase order is over the value of 10% of the original order, it will need to be re-approved.
-
Click SAVE.