Tolerances

Tolerances are used to ensure that the amount of total referenced activity against a referenced accounting line does not violate defined limits for overages or underages. Spending and revenue transactions in particular can have various rules concerning how the line amounts can differ between the referencing transactions and the referenced transactions.

Tolerances can be defined at several levels, with sites choosing which level or levels best meet their needs. When tolerances exist, they are invoked when the referencing accounting line contains a Reference Type of Final only. Keep in mind that the application will change from a Partial Reference Type to Final automatically when it finds that the referencing line will close the referenced line. All applicable tolerances will be evaluated so a transaction must pass all with the single exception of a fund tolerance overriding a system wide tolerance.

CGI Advantage Financial allows you to establish tolerances at the following levels:

Tolerances from these are independent of tolerances defined on the commodity line of the Purchase Order transaction and on Procurement Transaction Control. Those tolerances control referencing at the commodity line level where these control referencing at the accounting line.

Accounts Receivable transactions have special ’Short Final’ logic that is only invoked when a reference is made to a receivable transaction and not an individual receivable line or customer account.

The following fields are found on each tolerance page and are used in tolerance evaluation. All other fields are common and have been omitted. Of note are the two transaction code fields on the Transaction Tolerance page that allow the wildcard of ALL when the rule should not apply to a specific transaction code.

Field Name	Field Description
Accept Overage Amount	The amount up to which a referencing transaction’s accounting line can exceed the referenced transaction’s accounting line without invoking the tolerance control. Differences equal to or above the Accept Overage Amount might result in the invocation of a tolerance control or further tolerance testing if either a Reject Overage Percentage or Reject Overage Amount is defined. Use of the Accept Overage Amount is to define a dollar amount that is over ’but close enough’ not to cause rejection of the referencing transaction. The amount cannot be negative and cannot be greater than the Reject Overage Amount. A $10 Accept Overage on a Payment Request reference to a Purchase Order would be an example of such a tolerance. Such an amount should be applicable in most instances, except when a referenced accounting line is for a high dollar amount. Then if the Purchase Order is $100,000 and over-referenced by $25, a Reject Percentage should be available to evaluate such a reference, unless it is a hard and fast rule that $10 over is the limit.
Reject Overage Percentage	The percentage used to calculate the difference between the referencing and referenced accounting lines not by dollars but by a percentage over the referenced transaction line. Differences below the reject overage percentage might result in the invocation of a tolerance control if a Reject Overage Amount is defined and exceeded. Otherwise, if less than the percentage calculation, then there is no tolerance violation, but if equal to or greater than the percentage calculation, it will result in an error. Use of the Reject Overage Percentage is to define a percentage is over ’but close enough’ not to cause rejection of the referencing transaction. That percentage cannot be negative. Use of such a control can be used with or in substitute of the $10 Accept Overage Amount described in the earlier field. When used in conjunction with the Accept Overage Amount, if the reference violates the Accept Overage Amount but not the Reject Overage Percentage, then no error will be thrown, unless the Reject Overage Amount is violated.
Reject Overage Amount	The amount up to which a referencing transaction’s accounting line can exceed the referenced transaction’s accounting line that will not invoke the tolerance control. There is no further tolerance testing if the Reject Overage Amount is exceeded as the Reject Overage Percentage rule does not apply when the amount calculated for the percentage equals or exceeds the Reject Overage Amount. Use of this amount is to define the dollar amount that an over-reference will not be allowed. When used in conjunction with a Reject Overage Percentage, this amount will cap the calculation of the Reject Overage Percentage amount. The amount cannot be negative and cannot be less than the Reject Overage Amount.
Accept Underage Amount	The amount up to which a referencing transaction’s accounting line can be less than the referenced transaction’s accounting line without invoking the tolerance control. Differences equal to or less than the Accept Underage Amount might result in the invocation of a tolerance control or further tolerance testing if either a Reject Underage Percentage or Reject Underage Amount is defined. Use of the Accept Underage Amount is to define a dollar amount that is under ’but close enough’ not to cause rejection of the referencing transaction. The amount cannot be negative and cannot be greater than the Reject Underage Amount. A $10 Accept Underage on a Payment Request reference to a Purchase Order would be an example of such a tolerance to prevent the closing of Purchase Orders when ten or more dollars would still be open if a Partial Reference were performed. Such an amount should be applicable in most instances, except when a referenced accounting line is for a high dollar amount. Then if the Purchase Order is $100,000 and under-referenced by $25, a Reject Percentage should be available to evaluate such a reference, unless it is a hard and fast rule that $10 under was the limit.
Reject Underage Percentage	The percentage used to calculate the difference between the referencing and referenced accounting lines not by dollars but by a percentage under the referenced transaction line. Differences below the reject underage percentage might result in the invocation of a tolerance control if a Reject Underage Amount is defined and exceeded. Otherwise, if less than the percentage calculation then there is no tolerance violation, but if equal to or greater than the percentage calculation, it will result in an error. Use of the Reject Underage Percentage is to define a percentage is under ’but close enough’ not to cause rejection of the referencing transaction. That percentage cannot be negative. Use of such a control can be used with or in substitute of the $10 Accept Underage Amount described in the earlier field. When used in conjunction with the Accept Underage Amount, if the reference violates the Accept Underage Amount but not the Reject Underage Percentage, then no error will be thrown, unless the Reject Underage Amount is violated.
Reject Underage Amount	The amount up to which a referencing transaction’s accounting line can be below the referenced transaction’s accounting line that will not invoke the tolerance control. There is no further tolerance testing if the Reject Underage Amount is exceeded as the Reject Overage Percentage rule does not apply when the amount calculated for the percentage equals or exceeds the Reject Underage Amount. Use of this amount is to define the dollar amount that an over-reference will not be allowed. When used in conjunction with a Reject Underage Percentage, this amount will cap the calculation of the Reject Underage Percentage amount. The amount cannot be negative and cannot be less than the Reject Underage Amount.
Control Level	A tolerance rule requires a choice of one of the three available control levels: Reject, Override, or Warning to define the severity of all tolerance error messages that can be issued from that tolerance record.
Active	An indication providing the ability to turn off and on a tolerance without having to delete it (turn it off) and re-add it (turn it back on).

Tolerances can be defined in terms of either a percentage and/or fixed amount for underage and/or overages at all three levels. If one of the six tolerance fields is left blank, the system defaults to zero. Then when the system evaluates tolerances on a transaction this zero is interpreted as ’skip this edit-tolerances do not apply’. If your intention is to apply the strictest tolerances possible, that is, you cannot overspend against this reference, set the Reject Amount field (either Overage or Underage) to one (0.01) cent. When you want to indicate tolerances do not apply, that is, you can overspend, set the field to zeros (0.00).

Any combination of the following fields can be used to define a tolerance with the exception that if an Accept and a Reject Amount rule (overages as well as underages) is specified the corresponding Reject Percentage must be defined and not left as 0.0000%.

Tolerance amounts are also evaluated in an ’equals to’ operand in addition to the ’less than’ or ’greater than’ operand of the specific field. For this reason, if a whole dollar amount needs to be the tolerance amount, implementation may require that the amount be entered with 1 penny more or 1 penny less. Examples later will demonstrate this setup.

Below is an example of a tolerance established that will demonstrate when errors are issued and when processing is allowed.

Any one of the three tolerance pages has the following values:

Accept Overage Amount: $5.01
Reject Overage Percentage: 10.0000%
Reject Overage Amount: $500.00
Accept Underage Amount: $5.01
Reject Underage Percentage: 10.0000%
Reject Underage Amount: $19.99

A referenced line was processed for $100. One referencing line has already been processed that partially closed the $100 line for $60. In all cases below, a 2^nd referencing transaction is being validated with a reference type of final.

2^nd Referencing Transaction
Amount	Tolerance Edit
$20.01	Error for Reject Underage Amount as the $19.99 underage is equal to the Reject Underage Amount of $19.99
$20.02	Error for Reject Underage Percentage as the $19.98 underage is greater than the calculated amount for Reject Underage Percentage of $10 but less than the Reject Underage Amount of $19.99.
$45.01	Would be an error as a $5.01 overage is equal to the Accept Overage Amount but $5.01 is less than the calculation for Reject Overage Percentage of $10.00, so no error is issued.
$30.00	Error for Reject Underage Percentage as the $10 underage is equal to the calculated amount for Reject Underage Percentage of $10.
$30.01	Would be an error as the $9.99 underage is greater than the Accept Underage Amount, but $9.99 is less than the calculation for Reject Underage Percentage of $10.00, so no error is issued.
$35.00	No error as $5 underage is less than the $5.01 Accept Underage Amount.
$45.00	No error as a $5 overage is less than $5.01 Accept Overage Amount.
$49.99	Would be an error as a $9.99 overage is equal to the Accept Overage Amount but $9.99 is less than the calculation for Reject Overage Percentage of $10.00, so no error is issued.
$50.00	Error for Reject Overage Percentage as the $10 overage is equal to the calculated amount for Reject Overage Percentage of $10.
$539.99	Error for Reject Overage Percentage as the $499.99 overage is greater than the calculated amount for Reject Overage Percentage of $10 but less than the Reject Overage Amount of $500.00
$540.00	Error for Reject Overage Amount as the $500 overage is equal to the Reject Overage Amount of $500.00.