Receiving tolerance

Hi Gurus.

I see that there are two places where you can set the receiving tolerance percentage for an Org.

One under the Payables, at the Supplier Site level

Suppliers => Enter => Terms and Control => Receiving (Quantity Received Tolerance)

And the other under Purchasing Super User responsibility ,

Setup => Organizations => Receiving Options =>Org ; (Over Receipt Tolerance)

My understanding is that whatever is at the PO shipment level is used as the tolerance %age. However the question is where from the PO shipment derives the tolerance %age ( is it from supplier site or receiving org). I hope I am clear with the question and any insight is appreciated.