A price tolerance is the gap between the PO price and the invoice price that you accept without a query. What is purchase order?
Before you start
- Accounts payable admin
The Dynamics 365 Finance way
Where to find it: Accounts payable parameters > Invoice validation
- Set the price tolerance as a percentage or an amount.
- Pick Net unit price or Price totals matching.
- 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.
More help
- How to set a price tolerance on purchase order matching in IFS Cloud
- How to set a price tolerance on purchase order matching in CloudSuite Industrial
- How to set a price tolerance on purchase order matching in NetSuite
- How to match a vendor invoice to a purchase order in Dynamics 365 Finance
- How to handle a partial delivery against a purchase order in Dynamics 365 Finance
- How to check vendor invoice lines against agreed vendor prices in Dynamics 365 Finance
- All Dynamics 365 Finance how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
- learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/accounts-payable-invoice-matching
- learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/tasks/set-up-accounts-payable-invoice-matching-validation
- learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/three-way-matching-policies
- learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/invoice-matching-intercompany-purchase-orders
Also confirmed by
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.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier bills in Dynamics 365 Finance.