P2P-06

Control Description

SAP automatically compares vendor invoice quantities to goods receipt quantities using Tolerance Key DQ. If a variance exceeds the configured threshold, the system automatically blocks the invoice from payment to prevent disbursement for unreceived goods. Blocked invoices require manual review and management approval before release.

Risk

The company could accidentally pay for goods or services that were never actually received, leading to financial loss.

Implementation Details

## How the DQ Tolerance Key Works

• In SAP S/4HANA, the DQ tolerance key is used during Logistics Invoice Verification (transaction MIRO) to automatically check for quantity variances between an incoming vendor invoice and the reference document (either the Purchase Order or the Goods Receipt, depending on whether GR-based IV is active).

• When you enter an invoice, the system evaluates the invoiced quantity against the expected quantity. If the quantity variance exceeds the predefined thresholds, the system handles it based on configured limits

# How It Is Implemented
Implementing and configuring the DQ tolerance key involves setting up limits per company code in Customizing:

Configure Tolerance Limits (Transaction OMR6 or via SPRO)
• Go to SPRO (IMG path):Materials Management > Logistics Invoice Verification > Invoice Block > Set Tolerance Limits

Locate the DQ tolerance key (Quantity variance). For your specific Company Code, define the lower and upper limits:
• Lower Limit % / Absolute: Set acceptable negative quantity variances.
• Upper Limit % / Absolute: Set acceptable positive quantity variances (e.g., allowing a small over-delivery buffer if required, or setting both to 0 for strict matching).Check the Upper limit or Absolute checkboxes as required by your financial controls.

Test Procedures

A) Test of Design
1- Go to SPRO (IMG path):Materials Management > Logistics Invoice Verification > Invoice Block > Set Tolerance Limits. Select the DQ tolerance key.
2 - Verify that threshold in particular upper limit settings include check limits and the values are reasonable

B) Test of Operating Effectiveness:
1- Create a Purchase Order and post a Goods Receipt
2- Go to MIRO and attempt to post an incoming vendor invoice with a quantity higher than what was received/ordered, keeping it outside your configured DQ threshold.
3. Observe that the system allows you to simulate or save the document, but flags it with a warning and automatically blocks it for payment.
4. Check transaction MRBR to see the blocked invoice waiting for release control.