The physical inventory process is carried out for a particular inventory organization with the following parameters: Negative quantity Tolerance Percentage is set to 10% Approval Type = 'Always' The…

Question

Options

• AThe setup is invalid; it will give an error message.
• BBecause the 95 is within the 10% tolerance, it will post without approval.
• DAn approval will be required before posting.

• A
  4% (2)
• B
  90% (44)
• D
  6% (3)

Explanation

Option B is correct because the tolerance percentage acts as a threshold override: the counted quantity of 95 represents a negative variance of 5 units against a system balance of 100, which is exactly 5% - well within the 10% negative tolerance. When a variance falls within the defined tolerance, Oracle Inventory allows the adjustment to post automatically, bypassing the approval workflow even when Approval Type is set to 'Always'.

Option A is wrong because this is a perfectly valid configuration; tolerance and approval settings can coexist without conflict. Option D is the most tempting distractor - 'Always' sounds absolute - but in Oracle's physical inventory module, the tolerance threshold takes precedence and suppresses the approval requirement when the variance is within range.

Memory tip: Think of tolerance as a "free pass zone." If your counted variance lands inside the zone, you walk straight through regardless of what the sign on the door ('Always' approve) says. The tolerance gate is checked before the approval gate.

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