Procurement - EBS (MOSC)

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PO Close tolerance - How does it work and what is its purpose?

edited Jun 10, 2015 3:40PM in Procurement - EBS (MOSC) 5 commentsAnswered ✓

Using R12.1

Oracle Purchasing

I am unclear about how PO close tolerance works and what is its purpose.

My current understanding is that if receipt close tolerance is set at 20% then the PO line will automatically get closed if 80% of line qty is received.The purpose perhaps could be to close PO's where exact quantities are not expected to be received and business wants to close PO's with small remaining quantities.

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