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Upgrade to Microsoft Edge to take advantage of the latest features, security updates, and technical support. Set up Accounts payable invoice matching validation
In this articleBefore you begin, make sure that the Invoice matching configuration key is selected. If your legal entity tracks expenses, such as freight, by using charges, make sure that the Charges configuration key is selected. Accounts payable invoice matching is the process of matching vendor invoice, purchase order, and product receipt information. Differences among these documents are called matching discrepancies. Matching discrepancies are compared with the tolerances that are specified. If a matching discrepancy exceeds the tolerance percentage or amount, match variance icons are displayed on the Vendor invoice page and the Invoice matching details page. Determine which invoice matching validation to useFour different types of matching validation are available.
Set up parameters to enable invoice matching validation
Set up unit price tolerance percentagesGo to Accounts payable > Setup > Invoice matching setup > Price tolerances to define allowed price tolerance percentages. If you use a line matching policy of Two-way matching or Three-way matching, you can set up price tolerance percentages for your legal entity, items, and vendors. When vendor invoices are compared with the information on purchase orders, the applicable price tolerance percentage is searched for. The following is the default search order:
The default legal entity price tolerance is 0 percent, and this price tolerance is applied to all items and all accounts (All, All). You can't delete the record for the default legal entity price tolerance. By default, negative price discrepancies are allowed. However, you can't enter a negative number as the price tolerance percentage. To track negative price tolerance percentages, select If greater than or less than tolerance in the Display unit price match icon field on the Accounts payable parameters page. Then enter price tolerance percentages on the Price tolerances page. Set up matching policy overrideGo to Accounts payable > Setup > Invoice matching setup > Matching policy to define the default entry for the Matching policy field for lines in the Purchase order page. This is an optional setup. Use this page to set up two-way matching or three-way matching for items, vendors, or item and vendor combinations. These entries allow you to define more granular matching policies than the legal entity matching policy that you defined on the Accounts payable parameters page. The default legal entity line matching policy applies to all items and vendors except those for which a different line matching policy is specified on this page. On this page, select the Matching policy level. Select the level in the matching policy hierarchy to set line matching policies for.
The following hierarchy is used to determine the matching policy that is used:
Set up invoice totals matching tolerance for vendorsGo to Accounts payable > Setup > Invoice matching setup > Invoice totals tolerances to specify vendor-specific tolerances for invoice totals matching. The matching calculation uses the invoice totals tolerance percentage from the vendor account that is specified as the order account on the vendor invoice. If the vendor account doesn't have a specified tolerance percentage for invoice totals, the invoice totals tolerance percentage that's specified for the legal entity in the Accounts payable parameters page is used.
FeedbackSubmit and view feedback for Additional resourcesWhich document typically notifies the purchaser of his or her obligation to pay?A debit note, or a debit memo, is a document issued by a seller to a buyer to notify them of current debt obligations. You'll commonly come across these notes in business-to-business transactions — for example, one business may supply another with goods or services before an official invoice is sent.
Which of the following is designed to reflect the formal approval of the voucher for payment?A disbursement voucher is designed to reflect formal approval of the voucher for payment and to provide such added data as the account distribution and the amounts to be debited.
Who usually authorizes a purchase requisition?A department manager will fill out a purchase requisition to indicate which materials are needed and in what quantity. They may even suggest the vendor where the materials should be purchased. It will be sent to the purchasing department, who will then go through the request and approve it, alter it, or deny it.
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