1Z0-520 practice question 3 of 30

Price Tolerance (%) on the Purchasing Options Control section refers to the percentage by which ___________.

Full set: 245 questions

Answer options

A: the purchase order line price cannot exceed a price quote

B: the invoice price cannot exceed the purchase order line price

C: the purchase order line price cannot exceed the blanket amount

D: the supplier catalog price cannot exceed purchase order line price

E: the purchase order line price cannot exceed the requisition line price Correct answer

Correct Answer:

E. the purchase order line price cannot exceed the requisition line price

Explanation

In Oracle Purchasing, the Price Tolerance (%) setting within the Control region of Purchasing Options establishes the maximum allowable percentage variance by which a purchase order line unit price can exceed the unit price specified on the originating requisition line during document creation or AutoCreate. If the purchase order line price exceeds the requisition price beyond this percentage, the system restricts creation or issues a tolerance warning/error based on configuration.

Why Incorrect

A. Price quote comparisons are governed by quotation matching and RFQ evaluation settings, not the Purchasing Options Price Tolerance (%).
B. Invoice price variance against PO line price is controlled by Invoice Matching Tolerances defined in Oracle Payables.
C. Blanket agreement limits are governed by the Amount Limit field defined on the Blanket Purchase Agreement header.
D. Supplier catalog updates are managed via Catalog Authoring or Price/Sales Catalog updates, not PO price tolerances.

References

1. Oracle Purchasing User's Guide, Release 12.2, Part No. E48835-11, Chapter 1: Setting Up - Purchasing Options, "Control Options" section.

2. Oracle Applications Supply Chain Management Setup Guide, Release 12, "Purchasing Control Options and Tolerances."

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