How To Fix M8480 - Price too low (below tolerance limit of & &)

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 480

• Message text: Price too low (below tolerance limit of & &)

What causes this issue?

The price (value of the credit memo divided by the quantity) varies too
greatly from the net order price.
INCLUDE MM_IV_MELDUNGEN OBJECT DOKU ID TX

System Response

The system has found that the value of the credit memo falls short of
the expected value (credit memo quantity x net order price) by more
than the tolerance for price variance set in Customizing (&V1& &V2&).

How to fix this error?

Check your entries are correct and make any necessary changes.
Copied from 084, adapted for returns

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message M8480 - Price too low (below tolerance limit of & &) ?

  The SAP error message M8480, which states "Price too low (below tolerance limit of & &)," typically occurs during the processing of a purchase order or goods receipt when the price of the item being processed is lower than the defined tolerance limit set in the system. This is a common issue in procurement and inventory management within SAP.
  Cause:
  
  Price Tolerance Settings: The system has a defined tolerance limit for price differences, which is set in the purchasing or material master data. If the price of the item being processed falls below this limit, the error is triggered.
  Incorrect Pricing: The price entered for the item may be incorrect or not aligned with the expected pricing in the system.
  Contract or Agreement Issues: If there are existing contracts or agreements that specify a minimum price, and the entered price is below that, the error will occur.
  Currency Conversion Issues: If the transaction involves multiple currencies, fluctuations in exchange rates may lead to a price being interpreted as too low.
  
  Solution:
  
  
  Review Tolerance Limits: Check the tolerance limits set in the system. This can be done in the configuration settings under the purchasing area. You may need to adjust the tolerance limits if they are too restrictive for your business needs.
  
  Transaction Code: SPRO ? Materials Management ? Purchasing ? Purchase Order ? Set Tolerance Limits for Price Variances.
  
  
  
  Verify Pricing: Ensure that the price entered for the item is correct. Cross-check with the purchase order, contract, or pricing conditions to confirm that the price is valid.
  
  
  Adjust Purchase Order: If the price is indeed too low and not acceptable, you may need to adjust the purchase order to reflect a valid price that meets the tolerance limits.
  
  
  Consult with Procurement: If there are contracts or agreements in place, consult with the procurement team to ensure compliance with pricing agreements.
  
  
  Check Currency Settings: If applicable, verify that currency settings and conversions are correct to ensure that the price is being interpreted correctly.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or updates regarding this error message.
  User Documentation: Refer to SAP user manuals or help documentation for more detailed information on handling pricing and tolerance limits.
  Training: Consider training sessions for users involved in procurement to better understand how to manage pricing and tolerance settings effectively.
  
  By addressing the above points, you should be able to resolve the M8480 error and ensure smoother processing of purchase orders and goods receipts in SAP.