Tolerance threshold
The minimum variance, in percent or dollars, that is worth a human's attention.
Rounding, freight allocation and legitimate small adjustments produce a constant hum of tiny variances. Without a threshold, the report is unreadable.
Set two: a percentage floor that suppresses rounding noise, and a dollar floor that suppresses lines too small to be worth a claim regardless of percentage. Both belong in settings, not in code, because a distributor of low-value consumables and a mechanical contractor buying equipment need very different numbers.
Keep suppressed lines in the data. They should be excluded from the work queue, not from the totals, or you will understate the size of the problem.
Related terms
- Price variance — The difference between the unit price a supplier billed and the contracted price in effect on the invoice date.
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