What is tolerance level in SAP PSM-GM - Grants Management?

SAP Term: tolerance level

• Component: PSM-GM

• Component Name: Grants Management

• Description: A threshhold value that is compared against the authorized amount of a grantor agreement to validate whether a claim exceeds available funding. The tolerance level is set as a percentage, that if exceeded, can trigger an availbility check. Claims above the authorized amount, but below the tolerance level may be permitted.

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• Key Concepts: 
  Tolerance level is a feature in the SAP PSM-GM Grants Management component that allows users to set a limit on the amount of variance that can exist between the budgeted and actual amounts for a grant. This limit is referred to as the tolerance level. If the variance between the budgeted and actual amounts exceeds this limit, an alert is triggered. 
  
  How to use it: 
  To set a tolerance level, users must first access the Grants Management component in SAP. Once there, they can navigate to the “Tolerance Level” tab and enter the desired amount. This amount will then be used as the limit for any variance between budgeted and actual amounts. 
  
  Tips & Tricks: 
  It is important to note that the tolerance level should be set based on the specific needs of each grant. For example, if a grant requires very precise budgeting, then a lower tolerance level should be set. On the other hand, if a grant has more flexibility in terms of budgeting, then a higher tolerance level can be used. 
  
  Related Information: 
  The tolerance level feature in SAP PSM-GM Grants Management is closely related to other features such as budgeting and variance analysis. These features allow users to track their grants more effectively and ensure that they are staying within their budgets.