Invoice Match Approval Level

Invoice Match Approval Level:

Matching is the process of associating an invoice with a purchase order, receipt, or consumption advice. Matching ensures that you pay only for the goods and services that you ordered, received, or consumed.

If you use Oracle Payables with Oracle Purchasing or another integrated purchasing product, you can perform online matching of invoices and original purchase orders or purchase order receipts. Matching ensures that you only pay for the goods and services you ordered and that your suppliers do not over-bill you. If you are billed for an item over the amount and quantity invoice tolerances that is defined, then invoice gets holds raised.

There are 4 ways to match invoice:

• 2-Way.  2-way matching verifies that purchase order and invoice information match within your tolerances as follows:

1.     Quantity billed is less than or equal to Quantity ordered

2.     Invoice price is less than or equal to Purchase order price

• 3-Way.  3-way matching adds a third criterion to verify that receipt and invoice information match with the quantity tolerances you define:

3.     Quantity billed is less than or equal to Quantity received

• 4-Way.  4-way matching adds a fourth criterion to verify that acceptance documents and invoice information match within the quantity tolerances you define:

4.     Quantity billed is less than or equal to Quantity accepted

Note: The invoice match option in the purchase order schedule and the match approval level described below are independent options. The invoice match option determines whether Payables performs invoice matching to the purchase order or the receipt.

How to match invoice with PO or receipt:

1.     Match Invoice Lines: Use this option to match invoice lines from PO lines. It automatically creates invoice entries from selected PO lines.

2.     Match to Receipt Charges: Use this option to match invoice lines from receipt lines. It automatically creates invoice entries from selected receipt lines.

3.     Correct Matched Invoices functionality: To create credit memo or debit memo in case of extra payment made to supplier or new invoice in case of under payment. Lines can be copied from matched invoices “means PO match invoice” previously created for same supplier.

4.     Correct UnMatched Invoices' functionality: To create credit memo or debit memo in case of extra payment made to supplier or new invoice in case of under payment. Lines can be copied from Unmatched invoices “means without PO match invoice” previously created for same supplier.

Invoice Matching to Purchase Orders

You can match a single invoice to multiple purchase orders and you can match multiple invoices to a single purchase order.

The matching process:

• Creates invoice lines using information from purchase order schedules
• Creates "invoice distributions" using information from purchase order distributions
• Updates the billed quantities and amounts on purchase order schedules and distributions

If you match to a purchase order schedule that has multiple distributions, the matched amount is automatically prorated across all the distributions on the schedule. If you match directly to purchase order distributions, amounts are allocated against only those matched distributions.

Tip: During invoice entry, you can specify a purchase order number in the Identifying PO field. Information from that purchase order, such as legal entity and supplier, is then automatically populated on the invoice.

Note: On the Match Invoice Lines page, the purchase orders available for matching have the same legal entity as the invoice. 

Invoice Matching to Receipts

By matching to receipts, you can avoid invoice holds when paying for partial shipments. Also, conversion rate variances are likely to be smaller. The time between the receipt and invoice is less than the time between the purchase order and invoice.

Tip: If you use periodic costing in Oracle Fusion Cost Management, it's critical that you match to receipts to ensure accurate cost accounting.

Note: On the Match Invoice Lines page, the receipts available for matching belong to purchase orders with the same legal entity as the invoice. 

Invoice Matching to Receipt Charges

When you match an invoice with freight, tax, or miscellaneous charges to a receipt, the total cost of the goods includes those charges. Cost Management uses this cost information. Matching to receipt charges doesn't affect the billed quantities and amounts on the purchase order schedule.

For example, you purchase a computer from Company A for 1,000 USD. Company B ships you the computer for 50 USD. You can match the freight invoice from Company B to the computer receipt from Company A. The matching process associates the freight charge with the cost of the computer, making the total computer cost 1,050 USD.