PO Matching Configuration
Overview
Section titled “Overview”PO matching ensures invoice line items align with purchase orders through three-way validation:
- Purchase Order - What was ordered
- Goods Receipt - What was received
- Invoice - What was billed
These settings define acceptable variances between documents.
Configuration Settings
Section titled “Configuration Settings”Price Tolerance
Section titled “Price Tolerance”The default PO Price Tolerance is 5.0%, representing the maximum price variance allowed between invoice and PO line items.
How it works: The system compares invoice line item price to PO line item price, calculating variance as a percentage difference. Lines within tolerance pass; those exceeding it fail.
Recommended values by scenario:
- Strict control: 0-2%
- Standard business: 5% (default)
- Flexible pricing: 10-15%
Quantity Tolerance
Section titled “Quantity Tolerance”The default PO Quantity Tolerance is 1.0 unit, allowing for minor shipping variations as absolute units.
How it works: The system compares invoice quantity to PO/receipt quantity using absolute difference in units rather than percentage.
Allow Partial Invoicing
Section titled “Allow Partial Invoicing”Default: Yes - Enables invoices covering partial PO quantities, supporting progress billing and subscription services.
When disabled, invoices must match full PO quantities.
Allow Over-Receipt
Section titled “Allow Over-Receipt”Default: No - Prevents invoice quantities from exceeding PO quantities.
When enabled, vendors can include extras; when disabled, over-shipments are flagged. Enabling over-receipt can lead to unauthorized spending.
Configuration Reference
Section titled “Configuration Reference”| Field | Type | Default | Description |
|---|---|---|---|
| po_price_tolerance | Float | 5.0 | Price variance % allowed |
| po_qty_tolerance | Float | 1.0 | Quantity variance (units) |
| po_allow_partial | Check | Yes | Allow partial quantity invoicing |
| po_allow_over_receipt | Check | No | Allow invoice qty > PO qty |
Best Practices
Section titled “Best Practices”Start Conservative: Begin with stricter settings (2-3% price tolerance, 0 quantity tolerance) and adjust based on exception volume.
Document Exceptions: Track matching exceptions to identify problematic vendors and improve PO accuracy.
Coordinate with Procurement: Align rules with vendor contracts, receiving procedures, and payment terms.
Troubleshooting
Section titled “Troubleshooting”- Too Many Price Exceptions: Review vendor pricing, check currency conversions, verify PO prices are current
- Too Many Quantity Exceptions: Review shipping practices, check unit of measure mismatches, verify receiving accuracy
- Partial Invoicing Issues: Ensure POs track fulfillment, verify invoice references correct PO line, check running totals