The tolerance rate is a deviation between the Purchase order and the Invoice created by the supplier for this purchase order. 

The Precoro system matches Invoices against the Purchase order to verify procurement accuracy.

Using the tolerance rate function in Precoro helps to solve the following problems: 

  • saves time for approving any Invoices that correspond with tolerance rate deviation; 
  • helps to ensure that your suppliers are accurately invoicing you.

Precoro uses matching to review and approve automatically invoices that correspond to the Tolerance rate and puts nonmatching invoices up for review. 


How our clients use the Tolerance Rate?


The client sets up a unique tolerance rate for each individual supplier and places orders for them. 

If the supplier's Invoice exceeds the Tolerance Rate level, the Invoice is sent to the Purchase Order initiator for approval (see the sample below, it shows the difference between the original Purchase Order and Invoice received from the supplier). 

If the Tolerance Rate is acceptable, then the Invoice becomes approved automatically and is sent for payment.  



Also, detailed information regarding the products, prices, and quantities that were changed is shown there.