while SAP has defined the tolerance group methodology as its method for placing limits on an employee,configuration allows a company the flexibility to further tailor this methodology for other use . ssume a sporting goods company places an oder in January for 1000 life jackets. The company receives only 995 in the shipment from the manufacturer, which arrives in March.This delivery,although it is shot five life jackets,is close enough to the original order that it is accepted as complete. The difference of the five life jackets represents the tolerance. By defining the tolerance group to accept a varince of a small percentage of the shipment,the company has determined that it is not worth pursuing the five extra life jackets. Tolerance could indicate a shortage,as in this example,or an overabundance in an order.Thus,an order of 1005 life jackets would also be within the tolerance.Tolerance group should be defined and documented,in part to deal with fraud issue.The sporting goods company should know the reason for a short order : is it because the order is within the tolerance range,or is it because a worker on the loading dock stole five life jackets?
Can you think of other areas within a company that would need to have some limits set on variances or payments? why would it be beneficial to set those tolerance groups?
while SAP has defined the tolerance group methodology as its method for placing limits on an employee,configuration allows a company the flexibility to further tailor this methodology for other use . ssume a sporting goods company places an oder in January for 1000 life jackets. The company receives only 995 in the shipment from the manufacturer, which arrives in March.This delivery,although it is shot five life jackets,is close enough to the original order that it is accepted as complete. The difference of the five life jackets represents the tolerance. By defining the tolerance group to accept a varince of a small percentage of the shipment,the company has determined that it is not worth pursuing the five extra life jackets. Tolerance could indicate a shortage,as in this example,or an overabundance in an order.Thus,an order of 1005 life jackets would also be within the tolerance.Tolerance group should be defined and documented,in part to deal with fraud issue.The sporting goods company should know the reason for a short order : is it because the order is within the tolerance range,or is it because a worker on the loading dock stole five life jackets?Can you think of other areas within a company that would need to have some limits set on variances or payments? why would it be beneficial to set those tolerance groups?
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