> For the complete documentation index, see [llms.txt](https://docs.charted.com/ap-automation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.charted.com/ap-automation/charted-configuration/real-time-3-way-match/variance-types-reference.md).

# Variance Types Reference

### Abstract

When a user saves a *Vendor Bill* or *Item Receipt*, *Real-Time 3-Way Match* compares the transaction against its related *Purchase Order* and/or *Item Receipt* and flags any discrepancies as variances. Some variances are always detected. Others only appear once you've defined the thresholds that trigger them.

This article describes every variance type the system can detect, which transactions each one compares, whether it can be customized through *Override Settings*, and what you need to configure to enable it.

### How Variances Are Evaluated

Each variance type falls into one of two categories:

* **Line-level variances** compare individual lines, such as a single item's quantity, rate, or amount on a bill versus the matching PO line.
* **Total variances** compare the total billed or received amount across the entire transaction against a total threshold.

Each variance also applies to one or more comparisons:

* **Bill vs PO:** The vendor bill is compared against the purchase order.
* **Bill vs Receipt:** The vendor bill is compared against what was actually received.
* **Receipt vs PO:** The item receipt is compared against the purchase order.

{% hint style="info" %}
**Above** and **Below** threshold variances work as a pair. By default, only variances that exceed a threshold are flagged. To also flag variances that fall below it, define your thresholds and enable **positive and negative thresholds**.
{% endhint %}

### Variance Types

The table below lists all variance types. The **Override** columns show which criteria can be used to create an exception through *Override Settings*.

| Variance Type                                                                                          | Line Level | Bill vs PO | Bill vs Receipt | Receipt vs PO | Override: Subsidiary | Override: Vendor | Override: Item | Override: Custom Criteria | Override: Threshold Type | How to Enable                                                                       |
| ------------------------------------------------------------------------------------------------------ | :--------: | :--------: | :-------------: | :-----------: | :------------------: | :--------------: | :------------: | :-----------------------: | :----------------------: | ----------------------------------------------------------------------------------- |
| **Quantity Above PO Threshold**                                                                        |      ✅     |      ✅     |                 |       ✅       |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level quantity threshold(s)                                             |
| **Quantity Below PO Threshold**                                                                        |      ✅     |      ✅     |                 |       ✅       |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level quantity threshold(s) and enable positive and negative thresholds |
| **Amount Above PO Threshold**                                                                          |      ✅     |      ✅     |                 |       ✅       |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level amount threshold(s)                                               |
| **Amount Below PO Threshold**                                                                          |      ✅     |      ✅     |                 |       ✅       |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level amount threshold(s) and enable positive and negative thresholds   |
| **Rate Above PO Threshold**                                                                            |      ✅     |      ✅     |                 |       ✅       |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level rate threshold(s)                                                 |
| **Rate Below PO Threshold**                                                                            |      ✅     |      ✅     |                 |       ✅       |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level rate threshold(s)                                                 |
| <p><strong>Item Differs from PO</strong><br><sub>Item does not match PO line's item</sub></p>          |      ✅     |      ✅     |                 |       ✅       |                      |                  |                |                           |                          | Always enabled                                                                      |
| <p><strong>Expense Differs from PO</strong><br><sub>Account does not match PO line's account</sub></p> |      ✅     |      ✅     |                 |       ✅       |                      |                  |                |                           |                          | Always enabled                                                                      |
| <p><strong>Item Not Associated to PO</strong><br><sub>Item line does not exist on PO</sub></p>         |      ✅     |      ✅     |                 |               |           ✅          |         ✅        |                |             ✅             |                          | Always enabled (unless non-PO items are allowed)                                    |
| <p><strong>Expense Not Associated to PO</strong><br><sub>Expense line does not exist on PO</sub></p>   |      ✅     |      ✅     |                 |               |           ✅          |         ✅        |                |             ✅             |                          | Always enabled (unless non-PO expenses are allowed)                                 |
| **Quantity Above Receipt Threshold**                                                                   |      ✅     |            |        ✅        |               |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level quantity threshold(s)                                             |
| **Quantity Below Receipt Threshold**                                                                   |      ✅     |            |        ✅        |               |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level quantity threshold(s) and enable positive and negative thresholds |
| **Amount Above Receipt Threshold**                                                                     |      ✅     |            |        ✅        |               |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level amount threshold(s)                                               |
| **Amount Below Receipt Threshold**                                                                     |      ✅     |            |        ✅        |               |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level amount threshold(s) and enable positive and negative thresholds   |
| **Rate Above Receipt Threshold**                                                                       |      ✅     |            |        ✅        |               |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level rate threshold(s)                                                 |
| **Rate Below Receipt Threshold**                                                                       |      ✅     |            |        ✅        |               |           ✅          |         ✅        |        ✅       |             ✅             |             ✅            | Define line-level rate threshold(s)                                                 |
| <p><strong>Not Received</strong><br><sub>Item/expense line not received</sub></p>                      |      ✅     |            |        ✅        |               |                      |                  |                |                           |                          | Always enabled (when receiving is required)                                         |
| **Total Amount Billed Above PO Threshold**                                                             |            |      ✅     |                 |               |           ✅          |         ✅        |       ✳️       |             ✅             |                          | Define total threshold(s)                                                           |
| **Total Amount Billed Below PO Threshold**                                                             |            |      ✅     |                 |               |           ✅          |         ✅        |       ✳️       |             ✅             |                          | Define total threshold(s) and enable positive and negative thresholds               |
| **Total Amount Billed Above Receipt Threshold**                                                        |            |            |        ✅        |               |           ✅          |         ✅        |       ✳️       |             ✅             |                          | Define total threshold(s)                                                           |
| **Total Amount Billed Below Receipt Threshold**                                                        |            |            |        ✅        |               |           ✅          |         ✅        |       ✳️       |             ✅             |                          | Define total threshold(s) and enable positive and negative thresholds               |
| **Total Amount Received Above PO Threshold**                                                           |            |            |                 |       ✅       |           ✅          |         ✅        |       ✳️       |             ✅             |                          | Define total threshold(s)                                                           |
| **Total Amount Received Below PO Threshold**                                                           |            |            |                 |       ✅       |           ✅          |         ✅        |       ✳️       |             ✅             |                          | Define total threshold(s) and enable positive and negative thresholds               |
| **PO Is Not Approved**                                                                                 |            |      ✅     |        ✅        |               |                      |                  |                |                           |                          | Always enabled                                                                      |

> ✳️ **Item override for total thresholds:** Item variances can be excluded from impacting the total threshold.

### Enabling Variance Types at a Glance

Variance types fall into four groups based on what's required to turn them on:

* **Always enabled:** *Item Differs from PO*, *Expense Differs from PO*, and *PO Is Not Approved* are detected automatically. *Not Received* is also always on whenever receiving is required.
* **Enabled by default, with exceptions:** *Item Not Associated to PO* and *Expense Not Associated to PO* are detected unless your configuration allows non-PO items or expenses.
* **Requires line-level thresholds:** Quantity, amount, and rate variances are only detected once the matching line-level threshold is defined.
* **Requires total thresholds:** *Total Amount Billed* and *Total Amount Received* variances are only detected once a total threshold is defined.

For steps to define thresholds, see:

{% content-ref url="/pages/KpJCaiCvXEBt0LzSayKd" %}
[Enabling 3-Way Match and Defining Thresholds](/ap-automation/charted-configuration/real-time-3-way-match/enabling-3-way-match-and-defining-thresholds.md)
{% endcontent-ref %}

### Next Steps

Once you know which variances your configuration will detect, decide how the system should respond to them, and create exceptions for vendors, subsidiaries, or items that need different rules:

{% content-ref url="/pages/5n97dU6mQ5pdbY7T6B9x" %}
[Managing Variances, Payment Holds, and Overrides](/ap-automation/charted-configuration/real-time-3-way-match/managing-variances-payment-holds-and-overrides.md)
{% endcontent-ref %}

{% content-ref url="/pages/YhoadB5RZwuE3RPj1hB3" %}
[Override Settings](/ap-automation/charted-configuration/real-time-3-way-match/override-settings.md)
{% endcontent-ref %}


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