TABLE OF CONTENTS
To verify the procurement accuracy the Precoro system matches Invoices against Purchase Orders and, in case of serious discrepancies, highlights them. It is done via the Matching and Tolerance Rate features.
What is the Tolerance Rate and Matching
The Tolerance Rate (TR) is a deviation between a Purchase Order and an Invoice created by a Supplier.
Basically, the TR is a permissible percentage of deviation from the amount between the Purchase Order created by you and sent to the Supplier and the Invoice to your PO created by the Supplier.
Proceed to the Tolerance Rate article to learn more about how the TR works.
Precoro will calculate the delta between the Purchase Order and the Invoice. The document will go to the PO initiator for the Matching process if the Invoice-to-PO percentage difference exceeds the allowed Tolerance Rate.
Also important to note that if you have created several Invoices, their Matching will be sequential. First, you must approve one, and then you will be able to proceed to another.
Cases the Matching Process Gets Activated
The Matching process will be activated in the following cases:
2. The item’s price was decreased in the Invoice so that the Invoice Net Total is less than the Net Total of the related Purchase Order, and the price change is not within the set Tolerance Tate percentage.
3. A new item has been added to the Invoice, regardless of the changes this caused in Net Total. Even if the Net Total was not changed the Matching will still be triggered by adding new items with an exception for Split Lines functionality.
Please note that if you use the Split Lines functionality to add new items and the document’s Net Total remains within the Tolerance Rate, then the Matching process will not be activated.
4. The quantity of the item was increased so that the quantity in the Invoice exceeds the overall item quantity in the related Purchase Order.
Cases the Matching Process Will Not Be Activated
The Matching process will not be activated in the following cases:
1. If the Documents Custom Fields, Locations, Items Custom Fields, or other document fields get changed.
2. If the Tax was added to the Invoice and the Total amount of the Invoice increased, whereas there was no Tax in the Purchase Order document.
3. If the Exchange Rate gets changed and, it increases the Invoice Total.
Also, in case the amount exceeds the limited budget, you will not be able to save the Invoice.
4. If you use the Split Lines functionality to add new items and, the document’s Net Total will remain within the Tolerance Rate.
Triggering Re-Approval After the Matching Process
Your settings for the Tolerance Limit will, in turn, affect whether the document will be re-approved after the manual changes made in the document or whether the re-approval process will be triggered after the Matching.
Please see the Tolerance Limit article and learn more about its work.
The re-approval process can also be activated when a user takes a document in revision or editing mode and inputs significant changes, thus triggering the return of the document to the responsible person for approval once again.
Please see the Re-Approval Process in Precoro Documents article and learn more about its work.