Introduction:

In the Procure to Pay(P2P) life cycle procurement part ends when Account Payable(AP)
processor/Invoice clerk posts the vendor invoice in SAP using MIRO transaction which is also
called Logistics Invoice Verification(LIV). It is tedious job for invoice clerk manually to verify
each and every invoice line item is conforming to agreed price or quantity in PO. SAP
provides systemic way of verifying this kind of discrepancies and block the invoice for
payment using the 2 digit key called Tolerance key.
Lower & upper tolerance limits for all possible discrepancies can be maintained in tolerance
key. I would try to explain all the invoice tolerance keys in this blog with possible examples.
There are 2 kinds of invoice matching in SAP which are controlled by tolerance keys.
o

3 way match: Invoice line item is checked against corresponding purchase order and
good receipt documents item for price & quantity matching

2 way match: Invoice is checked against only to PO price/qty if there is no goods

receipt planned

Let us understand the how the automatic block is working via tolerance keys. In SAP we
have many tolerance keys, I am going to discuss only below keys in this part
AN,AP,BD,BR,BW,DQ,DW.
Tolerance Limits:
o

SAP tolerance limits work only for MIRO transaction

Invoice posted in FB60 is not subject to tolerance keys limit check

Tax amount is not included during tolerance check

It is stored in table T169G

Invoice blocking ways:

In SAP vendor invoice can be blocked for payment by anyone of the following way.

1. Automatic block: Only if there is a discrepancy due to price or quantity or date variance in
an invoice. If the item amount is exceeded from the limit maintained in the tolerance key.
2. Manual block: Invoice processor could manually block an invoice either at item level or
header level
3. Blocking through payment term: Invoice can be blocked always with a particular payment
term even if there is no variance
4. Stochastic blocking: Random blocking of invoices without any variance
5. Blocking at vendor master level: Invoice can be blocked always for a particular vendor if
specific blocking key is maintained at vendor master level
Blocking indicators:
Blocking indicators are available both at header and item level of invoice document.
System set this indicator in the document wherever and whenever it is appropriate.
Header level:
Table: RBKP_BLOCKED

Field: MRM_ZLSPR

Possible values:
A

Automatically blocked due to existence of blocking reasons

Stochastically blocked

Manual payment block set in header no blocking reasons

Automatically blocked due to entry via Web Invoice

Item level:
Table: RSEG
Fields:
SPGRP

Blocking reason
price

SPGRM

Blocking reason
quantity

SPGRT

Blocking reason date

SPGRG

Blocking reason OPQ

SPGRV

Blocking reason
Project

SPGRQ

Manual blocking

Value = X

reason
SPGRS

Blocking reason
amount

SPGRC

Blocking reason:
Quality

1. AN Amount for an item without order reference

Definition: System checks every line item in an invoice with no order reference against
the absolute upper limit defined. Without order reference means direct posting to G/L or
Material.
System behavior:
If only the invoice line item is greater than absolute upper limit the invoice would be
blocked.
Let us understand with below example.

It updates RBKP table without a header Block R. But updates table RBKP_BLOCKED with
payment block A.
No entries in RSEG table as it is directly posted to G/L or Material
Tolerance
Key

RBKP

RBKP_BLOCK
ED

RSEG

Auto
release

AN

No blocking
indicator
update(ZLSP
R)

AAuto
block

No update

Not
possible

(item
amount
block)

2.AP Amount for an item with order reference

Definition: System checks every line item in an invoice with order reference against the
absolute upper limit defined.
Pre-requisite:
Item amount check must be activated at company code level OMRH

Item amount check must allowed for item category and GR indicator OMRI

System behavior:
Let us understand with below example

No blocking indicator at header table RBKP but RBKP_BLOCKED table has blocking indicator
A.
Blocking indicator RSEG- SPGRS (Blocking reason item amount) is set at item level.
Item amount block must be released manually. There is no automatic release possible even
if we perform any one of the following activities
Post subsequent credit

Adjust AP tolerance limit

Tolerance
Key

RBKP

RBKP_BLOCK
ED

RSEG

Auto
release

AP

No blocking
indicator
update(ZLSP
R)

A-Auto block

RSEGSPGRS = X

Not
possible

(item
amount
block)

3.BD Form small differences automatically

Definition: The system checks the balance of the invoice against the absolute upper limit
defined. If the upper limit is not exceeded, the system automatically creates a posting line
called Expense/Income from Small Differences, making the balance zero and allowing the
system to post the document
System behavior: Let us understand with below example
Small difference within tolerance limit:
As per the PO reference the invoice amount is 1000 USD.
But vendor actual invoice copy has amount of 1002 USD.

AP invoice processor enters the invoice amount as per the vendors invoice copy which is 2
USD higher than PO price.

Since small difference is within the tolerance limit, invoice would be posted without block.
Small difference amount would be debited to small difference G/L account maintained for
the transaction event key DIF in OBYC.
Same rule is applied in the lower side as well
Small difference above the tolerance limit:
PO price: 1000 USD
Vendor invoice amount: 1003 USD
If the small difference above the tolerance limit then system would not allow to post the
invoice with hard error Balance is not zero. Still AP invoice processor could able to post
invoice via menu bar option Edit -> Accept and Post provided if he/she has authorization
object M_RECH_AKZ allowed.

If we post with above option then system would behave as below.

o

Invoice will be posted without block

Small difference G/L account (DIF) get posted

RBKP MAKZN (net amount accepted manually) field will get updated with small diff.
amount : 3.00

Toleranc
e Key

Toleranc
e

RBKP

RBKP_
BLOCK
ED

RSEG

Auto
release

BD

Within
range

No blocking
indicator
update(ZLSPR)

No
update

No
blocking
reason
update

NA

BD

Above

No blocking
indicator
update(ZLSPR)

No
update

No
blocking
reason
update

NA

MAKZN field
updated with diff.
amount
4.BR: Percentage OPUn variance (IR before GR)
Definition: The system calculates the percentage variance using below formula and
compares the variance with the upper and lower percentage tolerance limits.

Pre-requisite to simulate this scenario:

1. No GR based IV
2. Variable order unit is activated at material level
3. Maintain tolerance key DW with Do not check active
Tolerance:

Material master:

CRT is maintained as order unit

EA is maintained as order price unit in info record 1 EA = 100 USD

PO Details:
PO has been created with CRT as Order unit and EA as Order price unit
Po quantity: 2 CRT = 24 EA

Invoice details:
Invoice is simulated before GR as below
Scenario 1:
Order unit quantity 2 CRT
Order price unit quantity 22 EA and amount 2200 USD
Observation: There is no warning message on the variance.
Let us use the above formula to find the variance percentage.

Difference is 100 91.6 = 8.9 % which is within the BR tolerance limit 10% maintained
Scenario 2:
Order unit quantity 2 CRT
Order price unit quantity 21 EA and amount 2100 USD

Observation: There is a warning message as below.

Let us use the above formula to find the variance percentage.

Difference is 100 87.5 = 12.5 % which is more than the BR tolerance lower limit 10%.
Hence we are seeing the above warning message which will block the invoice for payment.

Tolerance

RBKP

RBKP_BLOCK

RSEG

Auto

Key

BR

ED

No blocking
indicator
update(ZLSP
R)

A- Auto block

relea
se
RSEG- SPGRS
=X

Not
possi
ble

(item amount
block)

5.BW: Percentage OPUn variance (GR before IR)

Definition: The system calculates the percentage variance using below formula and
compares the variance with the upper and lower percentage tolerance limits.

Let us understand with same master data

PO Details:
PO quantity in order unit 2 CRT
Po quantity in order price unit 24 EA
GR Details:
GR quantity in order unit 2 CRT
GR quantity in order price unit 22 EA

IR Details:
Scenario 1:
IR quantity in order unit 2 CRT
IR quantity in order price unit 20 EA
Observation: There is no warning message on the variance.
Variance % = (20/2) / (22/2) *100
= 90.9%
Difference is 100 90.9 = 9.1 % which is within the BR tolerance limit 10% maintained

Scenario 2:
IR quantity in order unit 2 CRT
IR quantity in order price unit 19 EA
Observation: There is a warning message as below

Variance % = (19/2) / (22/2) *100

= 86.4%
Difference is 100 86.4 = 13.6 % which is more than the BR tolerance limit 10% and invoice
posted with payment block.

Tolerance
Key

RBKP

RBKP_BLOCK
ED

RSEG

Auto
relea
se

BR

No blocking
indicator
update(ZLSP
R)

A- Auto block

RSEG- SPGRS
=X

Not
possi
ble

(item amount
block)

6.DQ: Exceed amount: quantity variance

This tolerance key has both absolute and percentage limits.
Definition: If a goods receipt has been defined for an order item and a goods receipt has
already been posted, the system multiplies the net order price by (quantity invoiced (total
quantity delivered total quantity invoiced)).
If no goods receipt has been defined, the system multiplies the net order price by (quantity
invoiced (quantity ordered total quantity invoiced)).
System behavior:
Absolute limits:
Let us see the system behavior if only absolute values are maintained and percentage limits
are marked as Do not check.
Upper limit: 100.00

Lower limit: 100.00

Test data :- (GR has been defined)

PO quantity = 100 EA
PO price
= 100 USD
GR quantity = 50 EA
a) System behavior when invoice quantity is 51
Variance = PO price x (quantity invoiced (total quantity delivered total quantity
invoiced))
= 100 * (51 (50-0))
= 100 * (1)
= 100
Variance 100 is equal to upper limit 100 and there will not be any warning message.

b) System behavior when invoice quantity is 52

Variance = PO price x (quantity invoiced (total quantity delivered total quantity
invoiced))
= 100 * (52 (50-0))
= 100 * (2)
= 200
Variance 200 is more than upper limit 100 and there will be a warning message as below.

When we post invoice with above variance it will get blocked for payment.
It updates tables as below
Tolerance
Key

RBKP

RBKP_BLOCKE
D

RSEG

Auto
release

DQ

No blocking
indicator
update
(ZLSPR)

A- Auto block

RSEG- SPGRM =
X

Yes

(Quantity
block )

Automatic release possible if the blocking reason RSEG- SPGRM is deleted when we post
GRN for the balance quantity or credit memo for the excess invoiced quantity.
Same rules apply on the lower side as well
Test data :- (GR has not been defined)
PO quantity = 100 EA
PO price
= 100 USD
GR not possible
a)System behavior when invoice quantity is 51
Variance = PO price x (quantity invoiced (total quantity ordered total quantity
invoiced))
= 100 * (51 (50-0))
= 100 * (1)
= 100
Variance 100 is equal to upper limit 100 and there will not be any warning message.
b)System behavior when invoice quantity is 52
Variance = PO price x (quantity invoiced (total quantity ordered total quantity
invoiced))
= 100 * (52 (50-0))
= 100 * (2)
= 200

Variance 200 is more than upper limit 100 and there will be a warning message as below.
Invoice will be blocked for payment and same tables will be updated as above.

Percentage limits:
We can also configure percentage limits for the quantity variance check. In this case, the
system calculates the percentage variance from the expected quantity, irrespective of the
order price, and compares the outcome with the percentage limits configured.
Let us see the system behavior with same example if only percentage limits are maintained
and absolute values are marked as Do not check.
Upper % limit: 10.00

Lower % limit: 10.00

Test data :- (GR has been defined)

PO quantity = 100 EA
PO price = 100 USD
GR quantity = 50 EA
a)System behavior when invoice quantity is 55
Variance = (quantity invoiced total quantity delivered)/ (quantity expected)*100 %
= (55-50)/50 * 100 %
= (5/50)*100 %
= 10 %
Variance 10% is equal to upper limit 10 % and there will not be any warning message.
b)System behavior when invoice quantity is 56
Variance = (quantity invoiced total quantity delivered)/ (quantity expected)*100 %
= (56-50)/50 * 100 %
= (6/50)*100 %
= 12 %
Variance 12% is more than upper limit 10% and there will be a warning message as
below. Invoice will be blocked for payment and same tables will be updated as above.

Both Variances active:

If both absolute & percentage variance are active the system would block which ever
tolerance is first breached.
Quantity check for Delivery cost:
The system also carries out a quantity variance check for planned delivery costs when we
post only planned delivery cost.

Tolerance key not maintained:

If the tolerance key DQ is not maintained for a company code when we perform the same
transactions discussed earlier, system considers this as zero tolerance and block the invoice
for the payment for any deviation.
7.DW: Quantity variance when GR quantity = zero
Definition: If a goods receipt is defined for an order item but none has as yet been posted,
the system multiplies the net order price by (quantity invoiced + total quantity invoiced so
far).
The system then compares the outcome with the absolute upper tolerance limit defined.
System behavior:
This tolerance key works only for PO based invoice verification because GR based invoice
verification will not allow IR without GR.
DW absolute upper limit as 100:
PO quantity = 100 EA
PO price
= 10 USD
No GRN posted
a)If the IR quantity is 10 then system calculates variance as below
Variance = Net order price * (quantity invoiced + total quantity invoiced so far)
= 10 *(10+0) = 100
This value is equal to DW limit hence there is no warning message and system will not
block the invoice.
b)If the IR quantity is 11 then system calculates variance as below and block the invoice.
Variance = 10 *(11+0) = 110

This value is more than DW tolerance absolute upper limit hence invoice got blocked.
It updates tables as below
Tolerance
Key

RBKP

RBKP_BLOCKE
D

RSEG

Auto
release

DW

No blocking
indicator
update
(ZLSPR)

A- Auto block

RSEG- SPGRM
=X

Yes

(Quantity block
)

Automatic release possible if the blocking reason RSEG- SPGRM is deleted when we post
GRN for the balance quantity or credit memo for the excess invoiced quantity

DW absolute upper limit as Do not check:

PO quantity = 100 EA
PO price
= 10 USD
No GRN posted
If the IR quantity is 112 then also system would not block even though this is beyond the DQ
tolerance since it has been maintained as Do not check and there is no GR has been done.
One should be very careful to use this option as this would by-pass quantity
variance DQ block if there is no GR posted where GR has been planned
DW tolerance key is not maintained:
If this key is not maintained for a company code it would always blocks the invoice for PO
based invoice verification when there is no GR has been posted.
KW: Variance from condition value
Definition:
The system calculates the amount by which each delivery costs item varies from the
product of quantity invoiced * planned delivery costs/ planned quantity. It compares the
variance with the upper and lower limits defined (absolute limits and percentage limits).

System Behavior:
PO Qty = 100 EA
FRB1 = 100 SGD
GRN Qty = 100 EA
IR Qty = 100 EA
Planned delivery cost = 110 SGD
Variance (KW) = 100 * (110/100) = 110 which is 10 SGD more than PO but within the
tolerance hence No warning message.
If planned delivery cost is 111 SGD
Variance (KW) = 100 * (111/100) = 111 which is 11 SGD more than PO value above the
tolerance hence below warning message will be issued and invoice will be blocked for
payment.

Tolerance
Key
KW

RBKP
No blocking
indicator
update
(ZLSPR)

RBKP_BLOCKE
D
A- Auto block

RSEG
RSEG- SPGRP =
X
(Price block for
Delivery cost
line)

Auto
release
NO

LA: Amount of blanket purchase order

Definition:
The system calculates the sum of the value invoiced so far for the order item and the value
of the current invoice and compares it with the value limit of the purchase order. It then
compares the difference with the upper percentage and absolute tolerances defined.

System Behavior:
PO Limit = 1000 SGD
GR not applicable
IR1 Value = 500 SGD
IR2 Value = 510 SGD system allows without any warning message as the variance = (500
+510)=1010 is compared with PO limit 1000 SGD which is within the tolerance.
If we try to post the invoice for 511 then system would throw below pop-up message. Still
we can post the invoice which will be blocked for payment.

Tolerance
Key

RBKP

RBKP_BLOCKE
D

RSEG

LA

No blocking
indicator
update

A- Auto block

RSEGSPGRP = X

Auto release

A. Yes. If we
adjust the PO

(ZLSPR)

overall limit

LD: Blanket purchase order time limit exceeded

Definition:
The system determines the number of days by which the invoice is outside the planned time
interval. If the posting date of the invoice is before the validity period, the system calculates
the number of days between the posting date and the start of the validity period. If the
posting date of the invoice is after the validity period, the system calculates the number of
days between the posting date and the end of the validity period. The system compares the
number of days with the absolute upper limit defined.

System behavior:
Scenario 1:
PO Validity end date: 03/12/2015
Posting date : 13/12/2015
No warning message because (13-03)= 10 days is within tolerance
Scenario 2:
PO Validity end date: 03/12/2015
Posting date : 14/12/2015
Warning message as below since variance is above tolerance (14-3) = 11 days. It will be
blocked for payment .

Tolerance
Key

RBKP

RBKP_BLOCKE
D

RSEG

LD

No blocking
indicator
update
(ZLSPR)

A- Auto block

RSEGSPGRT = X

Auto release

A. Yes. If we
adjust the
PO Validity
end date

PP: Price Variance

Definition:
The system determines by how much each invoice item varies from the product of quantity
invoiced * order price. It then compares the variance with the upper and lower limits defined
(absolute limits and percentage limits).
When posting a subsequent debit/credit, the system first checks if a price check has been
defined for subsequent debits/credits. If so, the system calculates the difference between
(value of subsequent debit/credit + value invoiced so far) / quantity invoiced so far *
quantity to be debited/credited and the product of the quantity to be debited/credited *
order price and compares this with the upper and lower tolerance limits (absolute limits and
percentage limits).

System behavior:
Scenario 1:
PO Price :100 SGD / Item
PO Qty -:100 EA
PO Total value : 10000 SGD
IR Total amount: 10010 SGD
IR Qty 100 EA
System would allow without any message. Since the variance is (10010 10000) = 10 SGD
which is within the tolerance.
Scenario 2:
PO Price :100 SGD / Item
PO Qty -:100 EA
PO Total value : 10000 SGD
IR Total amount: 10011 SGD
IR Qty 100 EA
System would pop-up below message. Since the variance is (10010 10000) = 11 SGD
which is above the tolerance and it will be blocked for payment.

Scenario 3:

Invoice & Subsequent debit:

For the same PO Qty & amount if we do invoice as
IR Qty = 100 EA
IR Value = 10000 SGD
Then
Subsequent debit as
Qty = 100 EA
Value = 10 SGD
No warning message since the variance (already invoiced value+ current subquent debit
value PO amount ) = ( 10000+ 10 10000) = 10 is within tolerance.
If the value is 11 SGD then system would pop-up below message

Tolerance
Key

RBKP

RBKP_BLOCKE
D

RSEG

PP

No blocking
indicator
update
(ZLSPR)

A- Auto block

RSEGSPGRP = X

Auto release

A. Yes. If we
adjust the
PO Price
PS:
Price

variance: estimated price

Definition:
If the price in an order item is marked as an estimated price, for this item, the system
calculates the difference between the invoice value and the product of quantity invoiced *
order price and compares the variance with the upper and lower tolerance limits defined
(absolute limits and percentage limits).
When posting a subsequent debit/credit, the system first checks whether a price check has
been defined for subsequent debits/credits, If so, the system calculates the difference
between (value of subsequent debit/credit + value invoiced so far) / quantity invoiced so far
* quantity to be debited/credited and the product quantity to be debited/credited * order
price. It then compares the variance with the upper and lower tolerance limits defined
(absolute limits and percentage limits).

This works same as PP tolerance key when the PO price is flagged as

Estimate price.

Tolerance
Key

RBKP

RBKP_BLOCK
ED

RSEG

PS

No blocking
indicator
update
(ZLSPR)

A- Auto block

RSEGSPGRP = X

Auto
release
A. Yes.
If
we
adj
ust
the
PO
Pric
e

ST: Date
variance
(value x days)
Definition:

The system
calculates for
each item the
product of
amount *
(scheduled delivery date date invoice entered) and compares this product with the
absolute upper limit defined. This allows relatively high schedule variances for invoice items
for small amounts, but only small schedule variances for invoice items for large amounts

javascript:;
System behavior:
Scenario 1:
PO item value: 100 SGD Per item
PO Qty = 10 EA
PO Value = 1000 SGD
PO Delivery date: 03/12/2015
IR Value = 1000 SGD
IR Qty = 10 EA
Invoice entering date = 02/12/2015
Variance = PO item amount * ( PO delivery date Invoice entry date)
= 100 (3- 2) = 100 *1 = 100 SGD
This is within tolerance hence no warning message.

If we post the invoice on 01/12/2015 then variance would be

= 100(3-1) = 100(2) = 200 SGD
This is above the tolerance limit hence invoice would get blocked for payment.
There wont be any warning message for date discrepancies before posting the invoice
Tolerance
Key

RBKP

RBKP_BLOCK
ED

RSEG

ST

No blocking
indicator
update
(ZLSPR)

A- Auto block

RSEGSPGRT = X

Auto
release
A. Ye
s.
VP: Moving
average price

variance
Definition:
When a stock posting line is created as a result of an invoice item, the system calculates the
new moving average price that results from the posting. It compares the percentage
variance of the new moving average price to the old price using the percentage tolerance
limits defined.

System behavior:
Material master MAP price: 100 SGD
PO Price = 100 SGD , Quantity = 10 EA and Value = 1000 SGD
Invoice value = 1060 SGD
New MAP after invoice posting = 1060/10= 106 SGD
Variance = (106 100 )/100 = 6%
Within PP tolerance limit but above the VP tolerance limit.
Below information message will pop-up and Invoice will not be blocked for payment. Based
on this tolerance key we can make the below info message as Warning or error before
posting.

With this I have completed all the tolerance keys relevant for Invoice Posting.