What is tolerance type in SAP LO-AGR-CC - Commodity Contracts, Expenses, Basic Functions?

SAP Term: tolerance type

• Component: LO-AGR-CC

• Component Name: Commodity Contracts, Expenses, Basic Functions

• Description: A qualifier that determines how the assigned tolerance schedule shall beevaluated per delivery, per delivery period, or per contract.

Smart SAP Assistant

• Key Concepts: 
  Tolerance type is a feature in the SAP LO-AGR-CC Commodity Contracts, Expenses, Basic Functions component that allows users to define the maximum amount of variance that is allowed between the expected and actual values of a contract. This variance is expressed as a percentage of the expected value. The tolerance type also defines the action that should be taken when the variance exceeds the defined limit. 
  
  How to use it: 
  To use tolerance type, users must first define the maximum variance allowed for a particular contract. This can be done by entering a percentage value in the tolerance type field. Once this is done, users can then specify what action should be taken when the variance exceeds this limit. This could include sending an alert to a responsible party or automatically cancelling the contract. 
  
  Tips & Tricks: 
  When setting up tolerance type, it is important to consider how much variance is acceptable for each contract. Setting too low of a tolerance could result in unnecessary alerts or cancellations, while setting too high of a tolerance could lead to unexpected losses. It is also important to ensure that all responsible parties are aware of any changes made to the tolerance type settings. 
  
  Related Information: 
  For more information on using tolerance type in SAP LO-AGR-CC Commodity Contracts, Expenses, Basic Functions, please refer to SAP Help documentation or contact your local SAP support team.