Overview.
Parameters.
Coins ERP+ uses tolerances to allow or disallow a match.
If the invoiced amount is less than or equal to the expected amount plus the tolerance, Coins ERP+ allows the match.
If the invoiced amount is greater than the expected amount plus the tolerance, Coins ERP+ disallows the match (does not allow you to accept the values) or warns you (asks if you want to accept the values).
Tolerances can be applied to each line, or to the invoice total.
There are a number of reasons why the invoice amount may be greater than expected. Some examples are listed below, but the means of dealing with them are the same.
Example 1: An order is raised for £1000.00 of materials. The supplier has invoiced you £1050.00 because they have added a delivery charge in error.
Example 2: The supplier raised their prices in-between the order being raised and the goods being delivered.
Your business will have defined an upper tolerance – either a value or % amount higher than the original order under which they will accept the payment of the invoice or beyond which approval must be sought before the system will allow payment.
Invoice Amount greater than Order Amount (Within Tolerance)
Open the appropriate matching line and change the Invoice Price to that shown on the invoice or select the Override Value field and amend the Invoice Value.
Save the line.
Coins ERP+ displays a warning that the Invoice Amount is in excess of expected, but that it is within tolerance.
Coins ERP+ automatically allocates a Hold Code indicating the within tolerance condition but this is for memorandum and reporting purposes only and does not physically place the invoice on hold.
The Quantity Invoiced column updates. The Matched amount at the bottom of the screen should now be populated and the Difference should be zero.
Click Next to return to the batches listing screen.
Invoice Amount greater than Order Amount (Outside Tolerance)
Open the appropriate matching line and change the Invoice Price to that shown on the invoice or select the Override Value field and amend the Invoice Value.
Save the line.
You will be prompted that the Invoice Amount is in excess of expected, and that it is not within tolerance.
The Coins ERP+ system can be set to not allow entry of lines that exceed tolerances. If this is the case for your business, you will not be able to continue with the entry of this invoice.
Coins ERP+ will automatically allocate a Hold Code indicating the outside tolerance condition and the invoice will be placed on hold.
The buyer will need to be consulted regarding the price difference and identify the reason for it. Possible scenarios are:
The Purchase Order is correct and a Credit Note must be requested from the supplier.
The Invoice is correct.
In order to pay the invoice, one of the following actions will need to be taken:
Request a Credit note from the supplier and amend the Hold code on the invoice to indicate this is the case. Enter the credit note when received.
Amend the order and take it off hold.
Parameters
PO/TOLMETH
Invoice Tolerance Method
The method COINS uses to calculate tolerances when matching a material order.
TOTAL (By Total) = COINS calculates tolerance on the total value; this reduces the risk of accepting high tolerance levels if several lines are incorrect.
The parameter TOLAMT is still used for the tolerance amount, but you can override these on a user/group basis by setting up user-procedure parameters as follows: Procedure "po1041", parameter (as an example) "TOLAMT=50 PTOLAMT=30".
blank (By Line) = COINS calculates the tolerance for each order line.
Related Parameter
PO/TOLAMT - Tolerance amount
PO/TOLAMT
Tolerance amount
The tolerance allowed when matching purchase invoices, expressed as a currency amount.
To be accepted, the invoiced amount must not be greater than the expected price plus the tolerance. If the amount is greater than either the percentage or the tolerance amount, COINS refers to the ALOUTTOL parameter to determine what action to take.
Related Parameter
PO/ALOUTTOL - Allow tolerances to be exceeded
PO/TOL%
Tolerance %
The tolerance allowed when matching material purchase invoices, expressed as a percentage of the delivery value.
To be accepted, the invoiced amount must not be greater than the expected price plus the tolerance. If the amount is greater than either the percentage or the tolerance amount, COINS refers to the ALOUTTOL parameter to determine what action to take.
Related Parameter
PO/ALOUTTOL - Allow tolerances to be exceeded
PO/ALOUTTOL
Allow tolerances to be exceeded
Whether to allow tolerances to be exceeded during invoice matching.
What do you want COINS to do if the invoiced amount exceeds the tolerances (specified by the parameters TOLAMT, TOL%, PTOLAMT and PTOL%)?
Y = COINS displays a warning message and asks if the user wants to accept the values.
N = COINS disallows the match.
Hold Codes – Tolerance by Line
PO/DFLHCITP
Def Line Hold Code In Tol -Price(web only)
(Coins ERP+ only) The hold code that COINS assigns automatically during invoice matching to a line on which the invoiced price is greater than the ordered price, but is inside tolerance.
PO/DFLHCITQ
Def Line Hold Code In Tol -Qty (web only)
(Coins ERP+ only) The hold code that COINS assigns automatically during invoice matching to a line on which the invoiced quantity is greater than the ordered quantity, but is inside tolerance.
PO/DFLHCOTP
Def Line Hold Code Out Tol -Price(web only)
(Coins ERP+ only) The hold code that COINS assigns automatically during invoice matching to a line on which the invoiced price is greater than the ordered price, and is outside tolerance.
PO/DFLHCOTQ
Def Line Hold Code Out Tol -Qty (web only)
(Coins ERP+ only) The hold code that COINS assigns automatically during invoice matching to a line on which the invoiced quantity is greater than the ordered quantity, and is outside tolerance.
Hold Codes – Tolerance by Invoice Total
PO/DFIHCITV
Def Invoice Hold Code Inside Tolerance
A Purchase Ledger hold code to apply to invoices within tolerance (when calculating tolerance on the total value).
Related Parameter
PO/TOLMETH - Invoice Tolerance Method
PO/DFIHCOTV
Def Invoice Hold Code Outside Tolerance
A Purchase Ledger hold code to apply to invoices outside tolerance (when calculating tolerance on the total value).
Related Parameter
PO/TOLMETH - Invoice Tolerance Method
Invoice Amount greater than Order Amount (Within Tolerance)
Open the appropriate matching line and change the Invoice Price to that shown on the invoice or select the Override Value field and amend the Invoice Value.
Save the line.
Coins ERP+ displays a warning that the Invoice Amount is in excess of expected, but that it is within tolerance.
Coins ERP+ automatically allocates a Hold Code indicating the within tolerance condition but this is for memorandum and reporting purposes only and does not physically place the invoice on hold.
The Quantity Invoiced column updates. The Matched amount at the bottom of the screen should now be populated and the Difference should be zero.
Click Next to return to the batches listing screen.
Invoice Amount greater than Order Amount (Outside Tolerance)
Open the appropriate matching line and change the Invoice Price to that shown on the invoice or select the Override Value field and amend the Invoice Value.
Save the line.
You will be prompted that the Invoice Amount is in excess of expected, and that it is not within tolerance.
The Coins ERP+ system can be set to not allow entry of lines that exceed tolerances. If this is the case for your business, you will not be able to continue with the entry of this invoice.
Coins ERP+ will automatically allocate a Hold Code indicating the outside tolerance condition and the invoice will be placed on hold.
The buyer will need to be consulted regarding the price difference and identify the reason for it. Possible scenarios are:
The Purchase Order is correct and a Credit Note must be requested from the supplier.
The Invoice is correct.
In order to pay the invoice, one of the following actions will need to be taken:
Request a Credit note from the supplier and amend the Hold code on the invoice to indicate this is the case. Enter the credit note when received.
Amend the order and take it off hold.