Why do I have Purchase Order funding caps on my vendor invoice?
A PO Funding Cap will appear on the Vendor Invoice if that Vendor Invoice Overage setting has been selected either on the PO Summary itself and/or on the detail lines of the PO (screenshots below).
When the Vendor Invoice is created and there is an overage, the PO Fund. Cap Adj. creates another amount on the Vendor Invoice that credits a specific Posting Group account ("VI Funding Cap Adjustment" Account Category in Admin > Setup > Posting Groups; third screenshot below of Vendor Invoice with overage). If a VI Funding Cap Adjustment was not defined in the Posting Group, you will get an error.
The PO Funding Cap ensures that the Vendor Invoice reflects only the amount in the PO, until you get a PO Mod.
The overage credits the Vendor Invoice overage account instead of the Accounts Payable account. If/when you do get a PO Mod, you can create another Vendor Invoice that will move the PO Adjustment into Accounts Payable.
Note: if you select Limit instead of PO Fund. Cap Adj., you will be prevented from any overage above the PO line item amount.
PO Funding Cap Adj - Summary Setting
PO Funding Cap Adj - Detail Setting
Sample Vendor Invoice showing PO Funding Cap Adj