--- sourceDocument: Yokohama Finance and Supply Chain sourceDocumentLink: https://servicenow-prod.fluidtopics.net/r/yokohama/source-to-pay-operations Release : - yokohama ft:locale : - en-US ft:publication_title : - Yokohama Finance and Supply Chain ft:clusterId : - stpop bundleId : - stpop workflow : - Employee --- # Tolerance Rules and Variances for invoices # Tolerance Rules and Variances for invoices {#ariaid-title1} * Release version: Yokohama * * Updated January 30, 2025 * * ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 1 minute to read Tolerance rules define the limits set on an invoice to determine the permissible amount of variance that can be applied to an invoice before the invoice total exceeds the tolerance limit. The exception engine checks whether invoices with exceptions are configured with tolerance rules. You can customize tolerance rules of different types where the variance is compared with defined tolerance percentage and tolerance values. If the tolerance value exceeds the tolerance limit, exceptions are raised. ## Tolerance types {#tolerance-rules-and-variance__section_s2m_fts_xyb} Accounts Payable Operations supports the following tolerance types: * Line amount tolerance: Avoid payment delays by defining the acceptable difference between the expected and actual total amount for specific items or services of invoice. If the actual amount exceeds the expected amount but falls within this limit, the invoice is considered valid for payment. * Line quantity tolerance: Ensure easy payment processing by defining the acceptable range between the expected and actual quantities of items or services listed on an invoice. If the actual quantity exceeds the purchased quantity but remains within this limit, the invoice is considered valid for payment. This is a line level tolerance. * Line unit price tolerance: Prevent small discrepancies from impacting payment processing and supplier relations by establishing a tolerance range for the difference between the purchase order line unit price and the actual price of an invoice. When the actual unit price falls within this specified range, the invoice is ready to be processed for payment. This is a line level tolerance. * Overbilling amount tolerance: Defines the maximum allowable amount of overbilling between an invoice and the corresponding purchase order. If the actual amount exceeds the expected amount but falls within this limit, the invoice is considered valid for payment. This is a header level tolerance. * Over tax amount and under tax amount variances: Ensure smooth payment processing by defining an acceptable range between the supplier-provided tax and system-calculated tax amounts that allows minor differences within the defined tolerance range. If the supplier-calculated tax exceeds the system-provided tax but remains within the Over tax tolerance limit or the system-calculated tax exceeds the supplier-provided tax but remains within the Under tax tolerance limit, the invoice is considered valid for payment. Note: If tax amount variance for a tax line is within the tolerance range, then supplier tax amount will be copied over to final tax amount field by default. {#tolerance-rules-and-variance__ul_bj2_gts_xyb} * **[Define an invoice tolerance type](https://servicenow-prod.fluidtopics.net/bWJF2ZTnc7nxkUfvjFMBKw)** Define an invoice tolerance type that you can use in an exception definition. * **[Map invoice tolerance type with invoice exception definition](https://servicenow-prod.fluidtopics.net/T0BXhYtxlombuMiInxVAQw)** Define a new tolerance type and map them with invoice exception definition of your choice to fulfill a goal. * **[Define an invoice tolerance rule](https://servicenow-prod.fluidtopics.net/oboKM2t5QMO5nsEwT8F8zw)** Configure invoice tolerance rule definition for a tolerance type to be applied to invoices matching the invoice filter's conditions. * **[View tolerance form](https://servicenow-prod.fluidtopics.net/8m1Yfj7~RzqA3zKsYXY8gg)** Invoice processing cases with exceptions displays the associated Tolerance details at header level and Variance details at line level. **Related concepts** * [Invoice ingestion using Application programming interface (API)](https://servicenow-prod.fluidtopics.net/m9Kb8pn598jiG31ZgeI7tw "The invoice ingestion API enables customers to ingest bulk AP invoices from external systems such as supplier billing systems, buyer network, and OCR solutions, supplier networks into APO. The supported payload formats are cXML, JSON and XML.") * [Rules based engine](https://servicenow-prod.fluidtopics.net/bOrfSF542WcPhdcggpVb_w "The rule based engine maps the invoice line with purchase order line using fields such as unit price, delivered unit price, exact description, exact amount and amount round off.") * [Work with invoices](https://servicenow-prod.fluidtopics.net/vpZfIG38U8aiGCaQHyyuDQ "Invoices are generated for a payment against a purchase order. The Accounts Payable Specialist [sn_ap_apm.accounts_payable_specialist] can access all the invoices and take required actions to process the invoices in Source-to-Pay Workspace.") * [Invoice processing cases](https://servicenow-prod.fluidtopics.net/NoqhBRYN5hAl9N4lAyFhkg "Typically, Accounts Payable Operations integration with Document Intelligence automatically creates the invoice processing case by extracting data from the invoice that you receive as an attachment via email. However, the Accounts Payable Specialist may need to manually create a new invoice or update details of a partially created invoice in situations where the automated invoice creation process encounters issues or is not available.") * [Invoice exceptions](https://servicenow-prod.fluidtopics.net/IyXgSahnO3KZN8nsBjtBXw "Invoice exceptions are discrepancies identified during invoice processing that must be resolved before payment, such as missing information, tax variances, or supplier issues.") * [Invoice approvals](https://servicenow-prod.fluidtopics.net/vrNSVQBVP03wVQyX1~ze6w "Invoices with the No exceptions found status are eligible for approval.") **Related tasks** * [View invoice documents in the Source-to-Pay Workspace](https://servicenow-prod.fluidtopics.net/~wWYOVX7SO2X3zd9k1mNkA "View the invoice documents directly in the Source-to-Pay Workspace using Document Viewer without having to download them.")