SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payment > Manual Outgoing Payments > Define Tolerance Group (Vendors)
Tolerance group settings for vendor are used when there is a difference in payment or during a payment settlement. After defining it you need to allocate the group to each vendor in there vendor master data.
While defining a tolerance group you define two things;
- Up to which difference in payment amount the posting will be allowed automatically while clearing open items and
- Terms of payment for residual items posted during clearing.
This tolerance group will be applicable for both vendor and customer masters. You need to assign it to the respective master data.
To create a tolerance group you enter the transaction code OBA3 in the command bar of SAP. After reaching the Customer/Vendor tolerances screen click on new entries. You also have option of creating it by copying an existing tolerance group.
Update the following details to create a tolerance group;
- Four digit company code ID to which it will be applicable
- Tolerance group if created with description.
- Permitted payment differences in amount and percentage.
- The adjustment discount needs to be specified.
- Click on payment term from invoice and only grant partial cash discount
- Fill out other details are per your requirement.
Now save it.
If you have created employee and vendor/customer tolerance group then both will be taken into account while clearing a transaction. It depends on which transaction and who is doing it. You can create employee tolerance group through transaction code OBA4. You need to check both the setting before you go live and start posting transactions in to SAP.