Tolerance group for employees in SAP

Tolerance group in sap is defined to make sure that the employees do not exceed their authority while entering any financial transactions. Tolerance Group is created by some configuration as a result the limit is restricted to a specific point beyond which transaction can not be carried out.

While defining Tolerance group for employees, we need to predetermine various limits for employees like;

  1. The maximum document amount an assigned employee to a tolerance group is authorized to post. This sets the tolerance limit for a employee to post a transaction.
  2. The maximum amount the employee (assigned to a tolerance group) can enter as a line item in a customer or vendor account. This will set the tolerance limit per line items entered into a transaction.
  3. The maximum cash discount in percentage the employee can grant in a line item
  4. The maximum acceptable tolerance for payment differences for the employee

With the tolerance group settings in place, sap can post the payment difference by correcting either the cash discount account or by posting to a separate expenses or revenue account. For this automatic posting you need to define the percentage up to which the system will adjust the cash discount for the differences or up to which differences the system will post it to a expenses or revenue account if its not possible to charge it to a cash discount account. 

Creation of Tolerance Group for Employees

Creation of tolerance group can be done through transaction code OBA4 of by using following path;

Path for defining the tolerance group for employee in SAP: SPRO > Financial Accounting > Financial Accounting Global Settings > Document > Line item > Define Tolerance Group for Employees >

Steps to be followed after reaching the initial screen for configuration of tolerance group of employees:

  1. Click on NEW ENTRIES to create tolerance group for employees
  2. Enter the followings;
    • Group Name
    • Company Code Name
    • Amount per Document – Enter the maximum amount allowed per document i.e. set the maximum tolerance limit.
    • Amount per open item account item – enter the maximum amount allowed per line item in a document i.e. setting the tolerance limit for a line item.
    • Cash discount per line item – enter the maximum cash discount percentage allowed per line item
    • Revenue amount –Enter the payment difference in amount to be considered as revenue (refer the note below)
    • Expenses amount –enter the payment difference in amount to be taken as expenses (refer the note below)
    • Revenue percentage – enter the payment difference in percentage to be considered as revenue (refer the note below)
    • Expenses percentage – enter the payment difference in percentage to be considered as expenses (refer the note below)
    • Cash discount adj. to revenue – out of the payment difference how much will be adjusted with the cash discount
    • Cash discount adj. to expenses – out of the payment difference how much will be adjusted with the cash discount

Note: if you enter both the places (percentage and amount place) then, lesser of the two will be considered while calculating the payment differences

Click on SAVE button to save the settings for tolerance group of employees.

Enter the relevant field and click on Save.

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