What is tolerance key in SAP SRD-SRM - SRM-Supplier Relationship Management?

SAP Term: tolerance key

• Component: SRD-SRM

• Component Name: SRM-Supplier Relationship Management

• Description: An abbreviation used to define percentages or values for upper and lower tolerance limits. For example, TX is the tolerance key for tax variances.

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• Key Concepts: 
  Tolerance key is a feature in SAP SRM-Supplier Relationship Management (SRM) that allows users to define the maximum amount of deviation from the expected value of a purchase order item. This feature helps to ensure that the purchase order is within the expected range and that any discrepancies are identified and addressed. 
  
  How to use it: 
  To use the tolerance key, users must first define the maximum amount of deviation from the expected value of a purchase order item. This can be done by setting a tolerance limit for each item in the purchase order. Once this is done, any discrepancies between the expected value and the actual value of an item will be flagged and can be addressed accordingly. 
  
  Tips & Tricks: 
  When setting up tolerance keys, it is important to consider the type of items being purchased and their expected values. For example, if purchasing items with a high degree of variability, such as raw materials, it may be beneficial to set a higher tolerance limit than for items with more consistent values, such as finished goods. 
  
  Related Information: 
  The tolerance key feature is closely related to other features in SAP SRM-Supplier Relationship Management, such as price control and price determination. These features help to ensure that purchase orders are within budget and that any discrepancies are identified and addressed.