Why it matters for manufacturers
- A cost per unit that is wrong by a few cents changes margin on every product that uses the material.
- Surcharges for steel, fuel and currency are added late and may not be in the supplier agreement.
For manufacturers in Dynamics 365 Finance
- On Price tolerances set unit price tolerance percentages per item, item group, vendor or vendor group. The default for the legal entity is zero percent for two-way and three-way matching, so set a tolerance for volatile raw materials.
- Match price totals suits suppliers who invoice one order line in several parts. Choose percentage, amount or both. Percentage uses the transaction currency and amount uses the accounting currency.
- Invoice totals tolerance percentage can be overridden for specific vendors on the Invoice totals tolerances page.
What Dynamics 365 Finance does on its own
Net unit price and price totals matching within a percent or amount tolerance.
Tolerance can be set per legal entity and overridden on the item.
What you need and the setup steps: Supplier price checks for Dynamics 365 Finance.
Example
Example Resin Supplies sends an invoice for 4,000 kg of polypropylene. The purchase order price is $2.10 a kg. The invoice charges $2.28 a kg.
| Line | Amount | What the check finds |
|---|---|---|
| Polypropylene, 4,000 kg at $2.28 | $9,120.00 | Order price was $2.10, so the line is $720 over |
| Fuel surcharge | $85.00 | Not on the order |
| Pallet fee | $40.00 | Not on the order |
The check flags the price rise of $0.18 a kg and both surcharges. Purchasing confirms the new rate or disputes it before the bill goes to approval.
Common mistakes
- Letting the purchase order price be edited to match the invoice, which erases the evidence of a price rise.
- Accepting surcharges because the amount is small, then finding they add up over a year.
Step-by-step guides for Dynamics 365 Finance
- How to check vendor invoice lines against agreed vendor prices in Dynamics 365 Finance
- How to set a price tolerance on purchase order matching in Dynamics 365 Finance
What Pulsify adds
Pulsify checks every line against the purchase order or a price list you upload for each vendor. Pulsify connects to Dynamics 365 Finance. We set up the connection for you. More about supplier price checks in Pulsify or Pulsify for manufacturers.
More help
- Supplier price checks in Kinetic for manufacturers
- Supplier price checks in CloudSuite Industrial for manufacturers
- Supplier price checks in NetSuite for manufacturers
- Invoice approvals in Dynamics 365 Finance for manufacturers
- Multi-entity accounts payable in Dynamics 365 Finance for manufacturers
- Duplicate invoice checks in Dynamics 365 Finance for manufacturers
- PO matching in Dynamics 365 Finance for manufacturers
- All Dynamics 365 Finance how-to guides
Sources
Last checked 2026-10-19.
- 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/accounts-payable-invoice-matching
- www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices
Also confirmed by
Common questions
Can Finance set different price tolerances for each raw material?
Yes. The Price tolerances page accepts a percentage for the legal entity, an item, an item group, a vendor, a vendor group or an item and vendor pair. The legal entity default is zero percent. Invoice totals have their own tolerance, which can be set per vendor.
Are small surcharges worth checking?
Yes. A $40 pallet fee on 300 deliveries a year is $12,000. Check recurring surcharges against the supply agreement and ask for them to be fixed in writing.
Does Finance check unit price against the order?
Yes. Pick Net unit price matching and set a tolerance as a percentage or amount. Invoices outside it show variance icons. A user can approve posting with the variance when Post invoice with discrepancies is set to Require approval.
Pulsify setup guides
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Book a call to see how Pulsify handles supplier price checks in Dynamics 365 Finance for manufacturers.