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

SAP Term: tolerance limits

• Component: SRD-SRM

• Component Name: SRM-Supplier Relationship Management

• Description: The upper and lower value restrictions allowed by a tolerance.

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• Key Concepts: 
  Tolerance limits in SAP SRM-Supplier Relationship Management (SRM) are used to define the maximum amount of deviation from the expected value that is allowed in a particular transaction. This helps to ensure that all transactions are within the acceptable range and that any discrepancies are identified and addressed quickly. 
  
  How to use it: 
  Tolerance limits can be set up in SAP SRM for each transaction type. The limits can be set up for different types of transactions such as purchase orders, invoices, and payments. The limits can also be set up for different currencies and different suppliers. Once the tolerance limits are set up, they will be applied to all transactions of that type. 
  
  Tips & Tricks: 
  It is important to ensure that the tolerance limits are set up correctly so that any discrepancies are identified quickly. It is also important to review the tolerance limits regularly to ensure that they are still appropriate for the current business environment. 
  
  Related Information: 
  For more information on setting up tolerance limits in SAP SRM, please refer to the SAP Help documentation.