Set invoice tolerances

Learn how to set invoice tolerances for a Chart of Accounts or a commodity.

Invoice tolerances determine whether invoices should be placed on hold for approval due to discrepancies between the tax amount entered by the supplier on the invoice and the tax amount calculated by Global Tax Determination. Tolerances can be set on the Chart of Accounts-level, on the commodity-level, or both. When both are set, commodity-level tolerances override Chart of Accounts-level tolerances.

Tolerances can be set for a percentage, a set amount, or both.

Note:

For more information about invoice tolerances, read the Coupa documentation.

Set invoice tolerances for a Chart of Accounts

Click Setup, then click Invoice Tolerances in the Invoicing section.
Select the Chart of Accounts from the dropdown.
In the Internally Entered Invoices section, select the Enabled checkbox for the kind of tolerance you want to set:
- To set a tolerance for line item amounts, select Tax line engine % or Tax line engine amount.
- To set a tolerance for the total tax amount, select Tax total engine % or Tax total engine amount.
Note:
If you set tolerances for both line item amounts and the total tax amount, Coupa will place the invoice on hold if either amount is outside the tolerance.
Enter the tolerance percentage or amount in the % or USD fields.
For example, to have Coupa place an invoice on hold if the difference between the tax amount on the invoice and the tax amount calculated by Global Tax Determination is greater than $1, you should select Tax total engine amount and enter 1.000 in the USD field.
In the Supplier Created Invoices section, repeat the previous step.
Tolerances should be the same for both internally entered invoices and supplier-created invoices.
Click Save.

Set invoice tolerances for a commodity

Click Setup, then click Commodities in the Company Setup section.
Click the Edit icon for the commodity.
For Commodity Level Tolerances, click Invoice Tolerances.
In the Internally Entered Invoices section, select the Enabled checkbox for the kind of tolerance you want to set:
- To set a tolerance for line item amounts, select Tax line engine % or Tax line engine amount.
- To set a tolerance for the total tax amount, select Tax total engine % or Tax total engine amount.
Note:
If you set tolerances for both line item amounts and the total tax amount, Coupa will place the invoice on hold if either amount is outside the tolerance.
Enter the tolerance percentage or amount in the % or USD field.
For example, to have Coupa place an invoice on hold if the difference between the tax amount on the invoice and the tax amount calculated by Global Tax Determination is greater than $1, you should select Tax total engine amount and enter 1.000 in the USD field.
In Supplier Created Invoices, repeat the previous step.
Tolerances should be the same for both internally entered invoices and supplier-created invoices.
Click Save.

Sovos Docs

Set invoice tolerances

Set invoice tolerances for a Chart of Accounts

Set invoice tolerances for a commodity

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