Saturday, September 26, 2015

How The Match Approval Level Options works in Payables and Purchase Order

The Match Approval Level Options of  2, 3, or 4 way has nothing to do with Invoice holds.

Match Approval Level Options
                 Invoice                     PO
2-Way        Quantity Billed          Quantity Ordered
                 Unit Price            PO Line Price

3-Way        Quantity Billed          Quantity Received
4-Way        Quantity Billed          Quantity Accepted

Match Approval Level Options
The match approval level defaults to purchase order shipment lines when the purchase order is entered. You can override the default on the purchase order shipment. If you find that you are frequently overriding this value, change the default at the supplier site level.
If an item is used on the PO, the match approval level will default from the item and will override the supplier site. If the Item match approval level for the Item = Receipt required, then it results in a 3-way match. If the Item match approval level for the Item = Inspection required, then it results in a 4-way match.

When quantities and prices exceed specific tolerances you define, the Payables Validation process will place a matching hold on the invoice. You can configure matching holds so manual override is not possible in the Invoice Holds and Release Names window.
2-Way (Invoice to Purchase Order)
Quantity billed vs. quantity ordered on shipment line
Invoice unit price vs. purchase order line unit price
3-Way (Invoice to Purchase Order and Receipt)
2-Way match criteria AND
Quantity billed vs. quantity received
Item = Receipt Required
4-Way (Invoice to Purchase Order and Receipt and Inspection)
3-Way match criteria AND
Quantity billed vs. quantity accepted
Note: Quantity accepted = (Quantity received - quantity rejected)
Item = Inspection Required

Matching to a Purchase Order
Match your billed (invoice) items to the original purchase orders, purchase order distributions or receipts to ensure that you pay only for the goods or services you ordered. If you are billed for an item in excess of the amount and quantity tolerances you define in the Invoice Tolerances window, the Payables Validation process will apply a hold to the invoice. Invoice holds prevent payment.
You can match a single invoice to multiple purchase order shipments and distributions, or you can match multiple invoices to a single purchase order shipment or distribution provided the supplier is the same on all purchase orders.
When you match an invoice to a purchase order or receipt, Payables creates invoice lines and distributions using the purchase order distribution accounting information. You cannot delete invoice lines or distributions that were created through matching. If you match an invoice to the wrong purchase order, either reverse the individual distributions and then rematch to the correct purchase order, or cancel the invoice.

For holds to be placed on invoice during validation, it depends on your tolerance setup in Payables, and that setup will control what holds the applications will place on your invoice.

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