What configuration element in SAP S/4HANA can be set up to automatically block invoices for payment that have a price variance beyond a certain threshold?

The Tolerance Key is a configuration element in SAP S/4HANA that defines the acceptable limits for price variances between the purchase order and invoice. When an invoice is received, SAP compares the invoiced amount to the purchase order amount. If the variance exceeds the thresholds defined by the Tolerance Key, the system can automatically block the invoice for payment. This function is critical in maintaining control over costs and ensuring compliance with financial policies.

By utilizing the Tolerance Key, organizations can minimize the risk of overpayments due to discrepancies, ensuring that only invoices that meet the agreed conditions are processed. This is particularly useful in environments where strict budget adherence is essential.

In contrast, other options such as the Invoice Block Key, while also related to invoice processing, do not specifically address the threshold for price variance. Payment Terms deal primarily with the conditions under which payments are made, and Approval Workflow involves approval processes rather than automatic blocking based on price variances. Hence, the Tolerance Key is the most precise and relevant configuration for automatically managing invoice payments based on price variances.