Applying Tolerances and the Delivery Complete Indicator

For a goods receipt for a purchase order, the system proposes the open purchase order quantity of an item for the goods receipt.

The open purchase order quantity specifies the quantity still to be delivered for a purchase order item. The system calculates the open purchase order quantity as the difference between the ordered quantity and the delivered quantity. If the total quantity delivered for a purchase order item is equal to or greater than the purchase quantity, the open purchase order quantity is zero.

The system automatically adjusts the open purchase order quantity for each goods movement for the purchase order item (goods receipt, subsequent delivery, return delivery, and cancellation). order quantity, the open purchase order quantity is zero.

At goods receipt, you must change the proposed quantity to match the quantity actually delivered. The system compares the goods receipt quantity with the open purchase order quantity and determines whether there is an underdelivery or overdelivery.

In the standard system, underdeliveries are, in principle, allowed. The system interprets and accepts the underdelivery as a partial delivery. If you post the goods receipt with transaction MIGO or the SAP Fiori app Post Goods Movement, and you check the entries before posting the GR, the system indicates the underdelivery by displaying a warning message. In the order item, you can enter a percentage value for the underdelivery tolerance. The system does not issue a warning message if the total of previously delivered quantities and currently entered quantities lies within the underdelivery tolerance. The system does create a warning message during the check if the total is less than the tolerance.

Overdeliveries to a purchase order item are only allowed if this is determined in the purchase order item. You have the option of selecting the indicator for unlimited overdelivery in the purchase order item or specifying a percentage overdelivery tolerance. If the total of previously delivered and currently entered quantities lies within the overdelivery tolerance, the system does not issue a message. If the total is more than the tolerance, the system issues an error message.

The picture below uses the example of a purchase order with a quantity of 100 pieces. A tolerance percentage value of 10% was entered in the system for underdelivery and overdelivery. This means that the system will not generate any message if the delivered quantity is between 90 and 110 pieces.

The system will, however, display a warning message if the delivered quantity is below 90 pieces. On the other hand, an error message will appear if the delivered quantity is over 110 pieces.

If the same underdelivery and overdelivery tolerances always apply for one material, you can define them in the material master record as default values for purchasing. The tolerances are determined by the purchasing value key specified in the purchasing data of the material master record. If no other data source exits, the values are copied into the purchase order.

If underdelivery and overdelivery tolerances that vary from the material master record are valid for a vendor-material combination, you can define the tolerances in the purchasing info record for the vendor and material. These will then be taken into consideration while creating the purchase order.

It is also possible to specify tolerances directly in the order. The Tolerance Limit for Underdelivery and Tolerance Limit for Overdelivery fields, as well as the Unlimited Overdelivery allowed indicator, are found in the Detail Data section of an item on the Delivery tab page.

The Delivery Completed indicator specifies whether a purchase order item is considered closed. This means that no more goods receipts are expected for this item. If the Delivery Completed indicator is set, the open purchase order quantity becomes zero, even if the full quantity has not been delivered. It is still possible to post goods receipts of remaining quantities, but these no longer change the open purchase order quantity.

Setting the Delivery Completed indicator in a PO item has the following effects:

• The open PO quantity of the PO item equals zero.
• The PO item is no longer relevant for materials planning.
• The PO item is ignored when letters urging delivery of overdue goods are generated.
• An additional delivery is not expected, but is possible.
• The commitment for the PO item is canceled.
• The PO item can be deleted and archived.

• The system manages open purchase order quantities by adjusting them with each goods movement, including receipts and returns.
• Underdelivery and overdelivery tolerances determine whether the system issues a warning or error for quantity differences.
• Tolerance values can be set in the material master, info record, or directly within the purchase order item.
• The Delivery Completed indicator closes a purchase order item and stops further goods receipts from altering the open quantity.
• Automatic or manual settings for the Delivery Completed indicator ensure accurate processing and closure of purchase order items.