Match Supplier Invoice with Purchase Order

Description of process

The Match Supplier Invoice with Purchase Order process is used to match purchase order receipts, rental transactions, charges, stage payments and/or core deposits (from the exchange order flow) with supplier invoices and to make price changes for existing matches. This process requires that IFS/Purchasing is installed and that purchase orders have been entered. You can match invoices with purchase orders which are yet to be registered as arrived. Once the purchase order is registered as arrived the invoice will be automatically matched with the purchase order. The matching functionality helps you to control to only match parts that have actually arrived and to transfer the expense postings for these parts as individual posting lines on the invoice. It also prevents you from paying twice for the same parts or from paying for returned goods. For rental purchase orders the invoice is not matched to the purchase order arrival, but to rental transactions generated based on rental events.

Before matching can be performed, one or more purchase orders need to be connected to the invoice when the invoice is entered. The connection is made by specifying the purchase order number on the invoice. The matching is performed at the same time as the invoice is finally posted. When receipts or rental transactions are matched, cost postings are created automatically into the invoice based on information on the purchase order. When the invoice is saved, a voucher belonging to function group J is created, provided that the invoice has been previously registered into the system as preliminary posted. In this case the preliminary postings have been made for a voucher belonging to function group I. If the invoice is originally registered and matched at the same time, a voucher belonging to function group I is created when saving. Postings for supplier debt and any tax are created via posting control on the voucher of function group I.

Match with PO Receipts

Receipts registered in IFS/Purchasing or purchase orders for which rental transactions have been generated can be matched in the Manual Supplier Invoice page with command Match PO Receipts. In this page, all purchase order lines that are received and checked for quality or have rental transactions are displayed. On each order line, it is possible to alter quantity, gross and net price, discount, additional cost, and invoiced non-deductible tax amount. When performing this activity, the posting lines created on the invoice are not connected specifically to individual invoice lines but as cost postings for the total net amount plus the total non-deductible tax amount.

Matching can also be performed between individual invoice lines and in this case, the expense postings will be connected to each order line, i.e., each part purchased. This functionality is available from the Manual Supplier Invoice page by selecting the invoice line you want to match and then selecting command Match PO Receipts per Line. Expense postings are automatically retrieved because individual posting lines are connected to specific invoice lines when performing the matching. After this activity has been performed, you will have the expense postings for each purchase part clearly specified and connected per invoice line, in a similar way as the pre postings are connected to individual purchase order lines.

You can also perform the matching against delivery receipts on the PO, when there are multiple deliveries and invoices against a purchase order. In this case a receipt reference should normally be entered in the invoice. The postings will be automatically retrieved from the purchase order.

Another option for matching can be performed when you want to match individual invoice lines with expense postings connected to each order line, i.e., each part purchased and the invoice lines contain part number/charge type information. This functionality is available from the Manual Supplier Invoice page, select command Match PO Receipts. Invoice lines are automatically matched with received purchase order lines if the order number and part number corresponds. The expense postings are automatically retrieved because individual posting lines are connected to matched invoice lines after the matching has been performed. You will have the expense postings for each purchase part clearly specified and connected to an invoice line with the same information.

Price Adjustments

The Price Adjustments Purchase operation is used when the price of already matched purchase parts must be corrected and you have received a new invoice containing the price adjustment. Each purchase order line in need of a price adjustment must get the difference in price defined and thereafter, a matching is performed between the price changed order lines and the invoice holding the price adjustment. The page where price adjustment is performed can be reached from the Manual Supplier Invoice page, select command Price Adjustment Purchase. A price adjustment is only valid for a line that is already invoiced and is therefore not visible in the Post from Purchase Order page. A price adjustment only affects price difference and non-deductible tax postings. After this activity has been performed you will have price difference and non-deductible tax difference postings automatically retrieved on your invoice.

Price difference and non-deductible tax difference postings are automatically retrieved because individual posting lines are connected to the invoice line when performing the matching. After this activity has been performed, you will have the price difference and non-deductible tax difference postings for each purchase part clearly specified and connected per each invoice line holding a price adjustment.

Price adjustment can also be performed between individual invoice lines of an invoice containing price adjustments and already matched order lines. This functionality is available from the Manual Supplier Invoice page by selecting the invoice line you want to match and then command Price Adjustment Purchase per Line. Price difference postings are automatically retrieved because individual posting lines are connected to the invoice line when performing the matching. After this activity has been performed, you will have the price difference postings for each purchase part clearly specified and connected per each invoice line holding a price adjustment.

Cancel Matched Invoice

When you cancel an invoice that has been matched, all lines matched or connected to this invoice are rolled back. Depending on the type of matching used, the quantity to invoice, which can be viewed in IFS/Purchasing is handled differently.

The matching functionality can be used in the following situations:

The normal debit invoice option is used for regular matching between a supplier invoice and received purchase order lines. There are two options used for matching credit notes with order lines where parts are returned to the supplier either for credit or rework. The quantity return credit and quantity return rework option can only be used on stored purchase parts. Other types of purchase parts must be manually posted when they are returned. The latter matching option is used whenever parts are scrapped and no credit note from the supplier is needed or accepted.

Note: An additional parameter does not exist for using the price including tax for manual supplier invoices. Invoice matching is done based on the net amounts regardless of the price including tax settings. When matching a supplier invoice with a purchase order with the Use Price Incl Tax option enabled, it is recommended to use the gross amount as the amount entry method for the company in the Invoice section in the Company page.

Before you start entering information, check that Basic Data Required (BDR) has been set up as per instructions in Define Financials Basics, the Set up Basic Data Accounts Payable process.