Receipt/Invoice Close Tolerance explanation in Purchase Order/Oracle Fusion Procurement

Today I am going to take you through detailed information of Receipt/Invoice Close Tolerance explanation and how Purchase Orders with 2-Way and 3-Way matching options close due to tolerance percentage in practical examples.

Main points to be discussed:

Closing Control Options
What is Receipt Close Tolerance?
What is Invoice Close Tolerance?
What is 2- Way and 3-Way Matching Options in Purchase Order?
How Purchase Order Status is controlled with tolerance and 2/3-Way matching options?

Closing Control Options for Orders

You would close the order if you don’t expect any further transactions and want it not to appear on any open document queries.

The application has the ability to automatically set the status to CLOSED for schedules, lines, and entire orders based on controls that are defined by your organization. Once all schedules for a given line are closed, the line is closed. When all lines for a given header are closed, the document is closed.

The closing controls include:

• Receipt Close Tolerance Percent
• Receipt Close Point
• Invoice Close Tolerance Percent

When Purchase Order Line or Schedule satisfies 2 Receipt Closing point Purchase Order status becomes Closed for Receiving for header and lines.