# How to set a price tolerance on purchase order matching in Dynamics 365 Finance

In Dynamics 365 Finance, decide how far a vendor invoice line may differ from the purchase order before a person must look at it. Set that limit where Dynamics 365 Finance allows one and name who can pass a difference.

A price tolerance is the gap between the PO price and the invoice price that you accept without a query.

## Before you start

- Accounts payable admin

## The Dynamics 365 Finance way

Where to find it: Accounts payable parameters > Invoice validation

1. Set the price tolerance as a percentage or an amount.
2. Pick Net unit price or Price totals matching.
3. Invoices outside tolerance show match variance icons.

## Limits in Dynamics 365 Finance

- Price totals by percentage use transaction currency. By amount they use accounting currency.

## Good to know in Dynamics 365 Finance

- Set Post invoice with discrepancies to Require approval and a user approves posting with the variance on Invoice matching details.

## Common mistakes

- Setting a tolerance by amount and expecting transaction currency, when price totals by amount use the accounting currency.
- Not setting Post invoice with discrepancies to Require approval when users need to approve a variance.

## Common questions

### Where do I set the price tolerance?

Go to Accounts payable parameters > Invoice validation. Set the tolerance as a percentage or an amount, then pick Net unit price or Price totals matching.

### Which currency does the tolerance use?

Price totals by percentage use the transaction currency. By amount they use the accounting currency.

### Can a variance be approved instead of blocking?

Yes. Set Post invoice with discrepancies to Require approval, then a user approves posting with the variance on the Invoice matching details page. Invoices outside tolerance show match variance icons.

### Can I set a tolerance in Pulsify?

No. Pulsify matches to within 1 cent and shows any bigger difference as a flag. Your approver decides.

## Sources

- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/accounts-payable-invoice-matching
- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/tasks/set-up-accounts-payable-invoice-matching-validation
- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/three-way-matching-policies
- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/invoice-matching-intercompany-purchase-orders

### Also confirmed by

- Microsoft Certified Trainer matching guide, 2026: https://d365training.com/blog/three-way-matching-in-d365-finance-setup-and-resolution/

Source: https://www.pulsify.tech/how-to/set-a-price-tolerance-on-po-matching-in-dynamics-365-finance/ (last checked 2026-10-19)