How do the Match Approval Level Option and Invoice Match Option work?

Applies to:

Oracle Payables - Version: 11.5.10.2 to 11.5.10.2
Information in this document applies to any platform.
FORM:APXINWKB.FMB - Invoice Workbench
FORM:APXPMTCH.FMB - Match to Purchase Order
FORM:APXRMTCH.FMB - Match to Receipts
FORM:POXPOEPO.FMB - Enter Purchase Orders GUI

Goal

How do the Match Approval Level Option and Invoice Match Option found at the Purchase Order Shipments Level Work?

Solution

1.Select one of the following options for Match Approval Level:
Two-Way: Purchase order and invoice quantities must match within tolerance before the
corresponding invoice can be paid.
Three-Way: Purchase order, receipt, and invoice quantities must match within tolerance before the
corresponding invoice can be paid.
Four-Way: Purchase order, receipt, accepted, and invoice quantities must match within tolerance
before the corresponding invoice can be paid.
If you enter an item, the default value for this field comes from the item information at the
organization level. If not defined there, the default comes from the item information at the
master level. If you do not enter an item, the default is from your Purchasing Options. See:
Receiving Controls, Options, and Profiles.
    
    
2. Select an Invoice Match Option:
Purchase Order: Payables must match the invoice to the purchase order.
Receipt: Payables must match the invoice to the receipt.
Choose Receipt if you want to update exchange rate information on the receipt or if you want your
accounting to use exchange rate information based on the receipt date. (If you use Periodic
Costing, you must match to the receipt to ensure accurate cost accounting.)
The Invoice Match Option defaults from the Supplier Sites window. You can change the Invoice Match
Option on the shipment until you receive against the shipment.
Note: The Invoice Match Option and the Match Approval Level are independent options. You can
perform whichever Invoice Match Option you want regardless of the Match Approval Level.

For example, you can set a PO to any one of the following examples:
    
#1 - PO#5049 - 2-way/Purchase Order
#2 - PO#5050 - 2-way/Receipt
#3 - PO#5051 - 3 way/Purchase Order
#4 - PO#5052 - 3 way/Receipt
    
The Invoice Match Option determines what document you can match the invoice two.  In #2 & #4 If I
do not create a Receipt for these POs and try to match to the PO number, the system will not allow
me to. It will give me a
    
APP-SQLAP-10655: You cannot match to this document
    
You can match only to the document (purchase order or receipt) specified by the Invoice Match
option on the purchase order shipment. Either match to the specified document, or update the
Invoice Match option for the shipment and then complete this match.
    
The Match Approval Level determines what if any type of hold will be placed based on the Invoice
Tolerance setup.
    
So let's say we create a PO like #3 PO#5051 - 3 way/Purchase Order, however, we do not receive the
PO.  In this case we will receive a qty hold because we have the PO set to 3 way matching.
'Purchase order, receipt, and invoice quantities must match within tolerance before the
corresponding invoice can be paid.'

 

 

NOTE:

What is 2-way, 3-way, 4-way matching? How is this set-up?

Answer
------
2-way matching verifies that Purchase order and invoice information match
within your tolerances as follows:

    Quantity billed <= Quantity Ordered
    Invoice price <= Purchase order price

    (<= sign is used because of tolerances)

3-way matching verifies that the receipt and invoice information match with the
quantity tolerances defined:

    Quantity billed <= Quantity received

4-way matching verifies that acceptance documents and invoice information match
within the quantity tolerances defined:

    Quantity billed <= Quantity accepted.

    (Acceptance is done at the time of Inspecting goods).

Whether a PO shipment has 2-way, 3-way or 4-way matching can be setup in the
Shipment Details zone of the Enter PO form (character)

    Receipt required        Inspection required     Matching
    Yes                     Yes                     4-way
    Yes                     No                      3-way
    No                      No                      2-way

In GUI, Shipments block, alternative region, click on More...this brings up a
region with 'Invoice matching' column where you can choose 2-way, 3-way or 4-
way match.

You can find more detailed information about matching in the Oracle Payables
Reference Manual (Volume 3) Topical Essay on Integrating your Payables and
Purchasing Information.