How To Fix M8481 - Price too low (below tolerance limit of & %)

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 481

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

What causes this issue?

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

System Response

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

How to fix this error?

Check your entries are correct and make any necessary changes.
Copied from 085; 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 M8481 - Price too low (below tolerance limit of & %) ?

  The SAP error message M8481, which states "Price too low (below tolerance limit of & %)," typically occurs during the procurement process when the price of a material or service being entered is below the defined tolerance limit set in the system. This is a safeguard to prevent the acceptance of prices that are significantly lower than expected, which could indicate a data entry error or a potential issue with the supplier.
  Cause:
  
  Price Tolerance Settings: The system has a predefined tolerance limit for the price of materials or services. If the price entered falls below this limit, the error is triggered.
  Incorrect Pricing: The price entered may be incorrect due to a typo or misunderstanding of the pricing structure.
  Changes in Supplier Pricing: If a supplier has changed their pricing and the new price is lower than the tolerance limit, this error may occur.
  Contract or Info Record Issues: If there are discrepancies between the contract or info record and the price being entered, it may trigger this error.
  
  Solution:
  
  
  Review Tolerance Limits: Check the tolerance limits set in the system. This can be done by navigating to the relevant configuration settings in SAP (usually in the purchasing or materials management module).
  
  Transaction codes like OMD0 (for purchasing info records) or MEK1 (for maintaining conditions) can be used to review and adjust these settings.
  
  
  
  Verify Pricing: Double-check the price being entered to ensure it is correct. If it is indeed correct but below the tolerance limit, you may need to adjust the tolerance settings or discuss with the supplier.
  
  
  Adjust Tolerance Limits: If the price is valid and should be accepted, consider adjusting the tolerance limit for that specific material or service. This should be done with caution and in accordance with company policy.
  
  
  Consult with Procurement Team: If you are unsure about the pricing or the tolerance limits, consult with your procurement or purchasing team to ensure that the correct procedures are being followed.
  
  
  Use a Different Pricing Procedure: If applicable, consider using a different pricing procedure that may not have such strict tolerance limits.
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any updates or patches related to this error message. SAP frequently updates its software, and there may be specific notes addressing this issue.
  Documentation: Review SAP documentation related to purchasing and pricing procedures to understand how tolerance limits are set and managed.
  Training: Ensure that users involved in procurement are trained on how to handle pricing and tolerance limits effectively to minimize errors.
  
  By following these steps, you should be able to resolve the M8481 error and continue with your procurement processes.