Tolerance on days and amounts allows you to close an invoice even though the payment does not fully cover the amount on the invoice, whether this is because the due date for the payment discount has been exceeded, goods have been deducted or because of a minor error. This also applies to refunds and credit memos.
To set up tolerance you have to set up various tolerance accounts, specify both payment discount tolerance and payment tolerance posting methods and then run the Change Payment Tolerance batch job.
Open the General Posting Setup window. Set up a debit and a credit sales payment tolerance account and a debit and a credit purchase payment tolerance account.
Open the Customer Posting Groups window. Set up a debit and a credit payment tolerance account.
Open the Vendor Posting Groups window. Set up a debit and a credit payment tolerance account.
Open the General Ledger Setup window.
On the Application tab, fill in the Pmt. Disc. Tolerance Posting, Payment Discount Grace Period and Payment Tolerance Posting fields. For Help about a specific field, click the field and press F1.
Click Functions, Change Payment Tolerance.
To run the Change Payment Tolerance batch job, fill in the Payment Tolerance % and Max Payment Tolerance Amount fields and then click OK. For Help about a specific field, click the field and press F1.
You have now set up tolerance for local currency only. If you want the system to handle tolerance on payments, credit memos and refunds in a foreign currency, you must run the Change Payment Tolerance batch job. You must enter a currency in the Currency Code field.
To deactivate tolerance for a customer or vendor, you must block tolerance on the relevant customer or vendor card.
If you want to get a payment tolerance warning every time you post an application within the tolerance, you must activate the payment tolerance warning.
When you set up tolerance, the program checks if there are any open entries and calculates the tolerance for these entries as well.
Payment Tolerance and Payment Discount Tolerance
Blocking Payment Tolerance for a Customer or Vendor
Activating or Deactivating Payment Tolerance Warning
Change Payment Tolerance