Scenario :
While creating PO it is assumed that items received will be a quality leather and its rate is a A quality leather rate. But while receiving item,
- some quantity received at A quality rate
- some received at B quality rate (20% rate reduced)
- some received at C quality (30% rate reduced).
So PO will be revised before entering receipts against PO items.
Due to lower quality of item rate is to be reduced.
And this low quality item will not meet exact requirement of leather of A quality.
So PO quantity is to be increased upto 30% of original PO quantity.
Rate may be deviated but cannot be increased.
Also It may be possible that supplier send full quantity of leather at A quality rate or 10% excess of full quantity.
Possible solutions
1) By using form personalization can achieve solution requirement
Form personalization can limit the price increase to 20 % and qty by 30%.
2) Use Blanket Purchase agreement and create release from it to source material. On Blanket Purchase agreement in Price Reference tab there is Price Type, Allow Price Override, and Price limit. Check the allow price override check box and specify the limit 20% higher than actual line price and when material received you can modify the same on release.
3) use tolerance and routing. If the price or qty increased by 20 and 30% respectively then PO need full approval cycle and this can e a checkpoint and can be rejected.
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