What is over-delivery tolerance in SAP AP-PCP - SRM Purchasing Contract Processing?

SAP Term: over-delivery tolerance

• Component: AP-PCP

• Component Name: SRM Purchasing Contract Processing

• Description: The percentage of an item above the quantity or value stated in the contract that an enterprise is willing to accept.

Smart SAP Assistant

• Key Concepts: 
  Over-delivery tolerance is a feature of SAP's Purchasing Contract Processing (AP-PCP SRM) component that allows for a certain amount of over-delivery of goods or services. This means that the supplier can deliver more than the agreed-upon quantity without penalty. The tolerance is set by the buyer and can be adjusted as needed. 
  
  How to use it: 
  To use the over-delivery tolerance feature, the buyer must first set the tolerance level in the purchasing contract. This can be done by entering a percentage or an absolute value. Once the tolerance is set, the supplier can deliver up to that amount without penalty. 
  
  Tips & Tricks: 
  It is important to note that over-delivery tolerance does not apply to all types of contracts. For example, it does not apply to fixed-price contracts or contracts with a fixed delivery date. Additionally, it is important to set realistic tolerance levels so that suppliers are not incentivized to deliver more than necessary. 
  
  Related Information: 
  For more information on over-delivery tolerance and other features of SAP's Purchasing Contract Processing component, please refer to SAP's official documentation. Additionally, there are many online resources available that provide detailed tutorials and best practices for using this feature.