The three-way matching process eliminates that possibility by checking the order numbers and dates on all the documents and ensuring that all three forms for each order are accounted for. Please send your feedback to. It Reinforces Every Supply Chain Link This cross-checking procedure is important because it covers every major stage of procurement in the workflow, from ordering merchandise to ensuring the delivery of goods has taken place. The payment terms code on the purchase order does not equal the payment terms code on the voucher. A student recently shared a problem: Her company could not get its end users to record receipts in their eProcurement system. Receiving can add efficiency to your purchasing, inventory management, and invoice processing. The system logs each match rule exception for the voucher in a voucher match exception log table that you can view using the Match Workbench.
Compare voucher price with receipt price. If any issues are found — inaccurate quantities, wrong prices, damaged goods, or more, payment is not sent until the issue is rectified. Include percent tolerances from the rule, if any, when comparing the amounts. To run the Matching process, you must have installed PeopleSoft Payables and PeopleSoft Purchasing. This program doesnot remove the block if the discrepancy is not resolved. You can access the Match Workbench from the Match Request page, by clicking the Exceptions link on the Voucher Summary page in the Voucher component, or through general navigation.
The purchase order includes important information such as the materials, quantity, price, the location to ship to, tax information, and so forth. The best practice is to run this report in background by company code so that the program removes the block automatically after the corrective action taken by Buyer. If the prices, quantities and products match on on all three orders, it signifies that the whole sequence of events in the supply chain are completed and that your processes are efficient and accurate. Compiling these documents in advance of an audit and checking that the numbers line up using the three-way matching process is a big step in the right direction. The line schedule level matching options are: Full Match The system matches the line based on the purchase order header match control.
Purchase Order Your business should have a process for issuing purchase orders. Quantity proposed for payment is entered by User. These automated systems are so expensive that they are not a viable solution for smaller businesses. Invalid Receiver exists but not set for matching. Include amount tolerances from the rule, if any, when comparing the amounts. The Matching process found receipts for this purchase order that were available for matching for example not matched, not on hold, and not canceled but could not make an association to the voucher line using any of the document association criteria. Plus it gives you more direct control over your purchase orders and can communicate with other software.
The match control option for example, standard appears by default from the supplier table, but you can override the default. The total amounts for each charges code that applies to the invoice and purchase order are compared in the Compare charges values - Invoice: %1 form, as shown in the following table. Then met and no holds are placed on the invoice and the invoice is approved for payment. If the allowable tolerance for the charges code is 25%, the 99,999,999,999. You can define value and percent tolerances to override exceptions generated by the match rules. The values for these fields appear by default from the item definition. Overreliance on automation The overreliance on automated systems encourages staff complacency and reduces the benefit of human intuition.
Similarly, if receiving is optional, the Receiving Required matching rules do not apply. If the vendor invoice line price is not in the acceptable price tolerance, you can save the invoice until it is approved for posting, or until you receive a correction from the vendor. Include percent tolerances from the rule, if any, when comparing the values. Should You Always Require Receiving? If a matching discrepancy exceeds the tolerance percentage or amount, match variance icons are displayed in the Vendor invoice form and in the Invoice matching details form. If you find a discrepancy, you must reconcile the documents. If you have set the match control at the purchase order header for matching, the match rules then determines whether receiving is required for the purchase order line.
Price totals matching is controlled for the legal entity by the Match price totals field in the Accounts payable parameters form. The unit price tolerance does not equal 0, and the voucher price does not fall within the purchase order price range calculated using unit price tolerance. Match variance icon Invoice net amount Expected net amount Unmatched purchase price total variance amount Unmatched purchase price total in accounting currency variance amount Purchase price total tolerance 150. Nothing will change unless you take action towards becoming a world-class procurement professional. Delays can annoy suppliers, and also prevent a company from taking.
You need a performance improvement plan that's easy to implement and quick to produce results. The total quantity received including across all voucher lines and previously matched receivers exceeds the accepted quantity on the receiver. Define authority to override match exceptions on the User Preference - Procurement: Payables Online Vouchering page. Using a 3-way match can benefit organizations in several ways. Include amount tolerances from the rule, if any, when comparing the values. Related functionality Vendor invoices are often based on product receipts that represent actual shipments, instead of on purchase orders. To modify or add match rule controls with tolerances, you must understand the Matching process and how tolerances work.