Overpayment tolerance

When you attempt to overpay a line item, Contract shows notifications and acts according to settings for the contract type set at the organization level.

The contract type configuration setup (organization > Settings > Contract > Configurations > Contract type configuration setup) has an Allow overpayment of line items toggle for each contract type. When the toggle is set to No, overpayment of line items is not allowed. When the toggle is set to Yes, overpayment is allowed with either unlimited overpayment or with a maximum percentage of overpayment tolerance.

When the toggle is set to No and you try to submit a payment form, either through workflow or manually, that exceeds the amount of the line item, a red warning message shows, and the form is not submitted.

When the Allow overpayment online items toggle is set to Yes, and you have entered a percentage instead of checking the Unlimited check box, Contract validates that the total of all submitted payment forms does not exceed the overpayment percentage before submitting the form. A red warning icon is shown on the Line items tab of the payment form. If the project is set up for auto submission, the payment form is not submitted.

When multiple payment forms are submitted on a line item, and one of the payment forms changes the overpayment calculation to exceed the overpayment tolerance, auto submission of the form fails, even if it had been approved. For example, if the overpayment maximum percentage is set to 25% and the line item is $1000, the overpayment tolerance is $250 for a total of $1250. If you send a payment form through workflow for $750, it is under the $1000 and, if approved, can be submitted. However, if another payment form for $750 had already been sent through workflow, and your payment form is approved, it is not submitted because the total paid is $1500 and exceeds the overpayment tolerance.

Contract sends an email to let you know the submission failed due to the overpayment tolerance.