Oracle Purchasing - Invoice Matching - Two,
Three and Four Way
What is Matching?
Matching is a
process performed for goods and services ordered through a purchase order that
takes place during the online invoice approval process. Invoices are matched to
purchase orders (2 way matching), receiving information (3 way matching), and
inspection information (4 way matching) as applicable. The invoices must meet
matching tolerances or a hold is placed on the invoice and payment cannot be
made until the hold is resolved or manually released. Refer to "Tolerances" and "Invoice Holds" for more information.
The default
setting for all invoices is 2 way matching, if 3 or 4 way matching is required
it must be set on each purchase order when it is created.
PO Matching Setting in Purchase Order
Shipment Line
We can Set Invoice matching in five different
areas of Oracle Purchasing:
In the list below, a setting at any level will override the settings above it.
1. Oracle Purchasing Options
a. Navigate to: Setup > Organizations > Purchasing Options
b. Select Default Alternative Region
2. Supplier Information
a. Navigate to: Supply Base > Suppliers
b. Query on specific supplier
c. Click on Open
d. Select Receiving Alternative Region
3. Line Types
a. Navigate to: Setup > Purchasing > Line Types
b. In the Receipt Required field: Yes = 3-way, No = 2-way
4. Items
a. Navigate to: Items > Master Items
b. Query on specific item
c. Select Purchasing Alternative Region
d. In the Invoice Matching section: Yes = 3-way, No = 2-way
5. Purchase Order Shipments
a. Navigate to: Purchase Orders > Purchase Orders
b. Enter (header and) line information
c. Click on Shipments button
d. Select More Alternative Region
In the list below, a setting at any level will override the settings above it.
1. Oracle Purchasing Options
a. Navigate to: Setup > Organizations > Purchasing Options
b. Select Default Alternative Region
2. Supplier Information
a. Navigate to: Supply Base > Suppliers
b. Query on specific supplier
c. Click on Open
d. Select Receiving Alternative Region
3. Line Types
a. Navigate to: Setup > Purchasing > Line Types
b. In the Receipt Required field: Yes = 3-way, No = 2-way
4. Items
a. Navigate to: Items > Master Items
b. Query on specific item
c. Select Purchasing Alternative Region
d. In the Invoice Matching section: Yes = 3-way, No = 2-way
5. Purchase Order Shipments
a. Navigate to: Purchase Orders > Purchase Orders
b. Enter (header and) line information
c. Click on Shipments button
d. Select More Alternative Region
2 Way Matching
2 way
matching process quantity and amount on the invoice are matched to the quantity
and amount on the corresponding purchase order. The following table outlines
the 2 way matching process:
Step
|
Action
|
|
1
|
An invoice is received from
a supplier (vendor) for payment of goods or services ordered through a purchase
order.
|
|
2
|
An invoice is created in the
accounts payable module and matched to a purchase order.
|
|
3
|
During the online invoice
approval process, the invoice quantity and amount is matched to the purchase
order to ensure that tolerances are met.
|
|
4
|
If tolerances are . . .
|
Then
|
met and
|
no holds are placed on the
invoice and the invoice is approved for payment.
|
|
not met
|
a hold is placed on the
invoice. See step 5.
|
|
5
|
The reason for hold must be
resolved or a manual release of the hold must be processed.
|
|
6
|
Once the hold is resolved or
released, the invoice approval process must be repeated and if all tolerances
are met, the invoice is approved for payment.
|
3 Way Matching
3 way
matching process is used when an operating location is using online receiving.
In 3 way matching an invoice is matched to the corresponding purchase order for
quantity and amount and to receiving information. The following table outlines
the 3 way matching process:
Step
|
Action
|
|
1
|
Goods or services ordered through
a purchase order are received by central receiving or the appropriate
operating location department.
|
|
2
|
A query is performed in the
purchasing module, receiving form (transaction screen) to find the
appropriate purchase order.
|
|
3
|
Data is entered and saved
into the Oracle receiving form (transaction screen) including quantity
received.
|
|
4
|
Delivery of goods is
recorded in Oracle and then manually performed for receipt by end user (this
would be done if using central receiving).
|
|
5
|
An invoice is created in the
accounts payable module and matched to the purchase order created in the
purchasing module.
|
|
6
|
During the online invoice
approval process, the invoice quantity and amount is matched to the purchase
order and receiving information to ensure that tolerances are met.
|
|
7
|
If tolerances are . . .
|
Then
|
met and
|
no holds are placed on the
invoice and the invoice is approved for payment.
|
|
not met
|
a hold is placed on the
invoice. See step 8.
|
|
8
|
The reason for hold must be
resolved or a manual release of the hold must be processed.
|
|
9
|
Once the hold is resolved or
released, the invoice approval process must be repeated and if all tolerances
are met, the invoice is approved for payment.
|
4 Way Matching
4 way matching
process is used when an operating location is using online receiving and
inspection. In 4 way matching an invoice is matched to the corresponding
purchase order for quantity and amount, receiving, and inspection information.
The following table outlines the 4 way matching process:
Step
|
Action
|
|
1
|
Goods or services ordered
through a purchase order are received by central receiving or the appropriate
operating location department.
|
|
2
|
A query is performed in the
purchasing module, receiving form (transaction screen) to find the appropriate
purchase order.
|
|
3
|
Data is entered and saved
into the Oracle receiving form (transaction screen) including quantity
received.
|
|
4
|
Inspection information such
as quantity accepted or rejected is recorded into the Oracle inspection form.
|
|
5
|
Delivery of goods is
recorded in Oracle and then manually performed for receipt by end user (this
would be done if using central receiving).
|
|
6
|
An invoice is created in the
accounts payable module and matched to the purchase order created in the
purchasing module.
|
|
7
|
During the online approval
invoice process, the invoice quantity and amount is matched to the purchase
order and receiving and inspection information to ensure that tolerances are
met.
|
|
8
|
If tolerances are . . .
|
Then
|
met and
|
no holds are placed on the
invoice and the invoice is approved for payment.
|
|
not met
|
a hold is placed on the
invoice. See step 9.
|
|
9
|
The reason for hold must be
resolved or a manual release of the hold must be processed.
|
|
10
|
Once the hold is resolved or
released, the invoice approval process must be repeated and if all tolerances
are met, the invoice is approved for payment.
|
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