# How to set a price tolerance when matching invoices to POs

Decide how far an invoice may differ from the PO before someone queries it. Pulsify uses no percentage. It flags any unit price that differs and any quantity above the PO line, to the cent.

## Short answer

1. Decide the gap you accept between PO and invoice, if any.
2. Apply it to each line, not just the total.
3. Treat higher prices and higher quantities as queries.
4. Name who can accept a difference.
5. Review every flagged line before approval.

## Before you start

You need the POs and invoices for a recent month, so you can see how often prices differ and by how much. You need to know your supplier terms. Some suppliers can add fuel or freight surcharges. Some quote prices valid for 30 days. A tolerance does not replace those terms. It only sets how much noise you accept.

## The manual way

Xero and MYOB do not compare an invoice price with a PO price, so a tolerance is a written rule that people apply.

1. Pull the last month of bills that had a PO.
2. For each, compare the invoice unit price with the PO unit price. Record the gap in dollars and in percent.
3. Look at the spread. If most gaps are a few cents on rounding, a tiny dollar tolerance covers them. If gaps are random and large, the problem is the supplier or the PO process, not the rule.
4. Write the rule. For example: "Price on any line may not exceed the PO price. Quantity may not exceed the PO quantity. Anything else goes to the purchasing manager."
5. Record who can accept a difference, up to what amount.
6. Apply it on every bill. This is the hard part. A rule on paper that people skip is worse than no rule.

The limit is consistency. The same bill checked by two people can end in two different answers.

## The Pulsify way

Pulsify applies one fixed rule to every invoice line that is linked to a PO. You do not configure a percentage.

1. Pulsify links the invoice to the open PO synced from Xero or MYOB.
2. It matches each invoice line to a PO line on quantity and unit price, to within one cent.
3. A unit price that differs either way is flagged, for example "PO price is $72.90 each". A quantity above the PO line is flagged, for example "Exceeds PO by 4". A lower quantity is not flagged.
4. A line with no PO line is flagged as not on the purchase order.
5. A PO line at quantity 1 is treated as a lump sum and is not checked on quantity or price.
6. The flags are warnings. They do not block approval, so your approver decides.

If you want a policy such as "accept up to 2 percent on freight", it lives in your approval rules and your people. Pulsify shows the gap. You decide whether it passes.

## Worked example

Example Plumbing Supplies has a PO for 40 lengths of pipe at $18.50.

| Invoice unit price | Gap | Flagged by Pulsify | Policy: accept up to $0.50 |
|---|---|---|---|
| $18.50 | $0.00 | No | Pass |
| $18.80 | $0.30 | Yes | Pass, note the reason |
| $19.80 | $1.30 | Yes | Query the supplier |
| $17.90 | -$0.60 | Yes | Pass, but ask why the price fell |

On 40 lengths a $0.30 gap is $12.00 and a $1.30 gap is $52.00. Small gaps repeat. Across a year of weekly orders a $0.30 gap adds up to about $624. That is why the rule is per line, and why flagged lines are worth a glance even when you pass them.

## Common mistakes

- **Using a percentage on a big order.** Two percent of a $50,000 PO is $1,000. Use a dollar cap as well.
- **Checking the total only.** A $12 saving on one line can hide a $12 overcharge on another.
- **Passing a price drop without asking.** A lower price can mean the wrong item was supplied.

## Next step

[Try an invoice](https://app.pulsify.tech/sign-up) to see price and quantity flags on your own PO. Or [book a call](/contact/) to find out how customers have saved hours per week after switching.

Read the [PO matching guide](/guides/po-matching/) for every flag. Test a pair of documents with the free [PO and invoice matching checker](/po-invoice-matching-checker/).

## Common questions

### Does Pulsify let me set a percentage tolerance?

No. Pulsify compares quantity and unit price to within one cent. A unit price that differs either way is flagged. A quantity above the PO line is flagged. A lower quantity is treated as a partial bill. The flags warn you. They do not block approval.

### What tolerance is normal?

There is no standard. Many businesses accept a small dollar amount or a small percentage on low-value goods and none on high-value lines. Pick a rule you can explain to an auditor and apply it the same way every time.

### Is a line billed as a lump sum checked on price?

No. A PO line at quantity 1 is treated as a lump sum, so Pulsify does not check quantity or unit price on it. Check the amount yourself, or split the PO into measurable lines.

Source: https://www.pulsify.tech/how-to/set-a-price-tolerance-when-matching-invoices-to-pos/ (last checked 2026-10-19)