TABLE OF CONTENTS
To verify the procurement accuracy, the Precoro system matches Invoices/Receipts against Purchase Orders and highlights serious discrepancies if there are any. It is done via the Matching and Tolerance Limit features.
Please note that Precoro only automatically matches Invoices, to match the Receipts, you have to additionally activate that functionality in Basic Settings.
How to Activate Receipt Matching With PO
If you want to match Receipt documents with Purchase Orders, you must first activate this setting in Configuration → Basic Settings → Documents Setup → Receipts → Match with Purchase Order.
What is the Tolerance Limit and Matching
The Tolerance Limit with activated rules to Matching is a deviation between a Purchase Order and an Invoice/Receipt (if the Matching setting for it is activated) created by a Supplier.
Basically, the TL is a permissible percentage of deviation from the amount between the Purchase Order created by you and sent to the Supplier and the Invoice/Receipt to your PO created by the Supplier.
Proceed to the Tolerance Limit article to learn more about how the TL works.
Precoro will calculate the delta between the Purchase Order and the Invoice/Receipt documents. The document will go to the PO initiator for the Matching process if the Invoice/Receipt-to-PO percentage difference exceeds the allowed Tolerance Limit.
Also important to note that if you have created several Invoices/Receipts, 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:
1. The item’s price was increased in the document so that the Net Total exceeds the Net Total of the related Purchase Order, and the price change exceeds the Tolerance Limit.
2. The item’s price was decreased so that the Net Total is less than the Net Total of the related Purchase Order, and the price change is not within the set Tolerance Limit percentage.
3. A new item has been added to the document, 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 and Adding New Items Without Matching setting.
Please note that if you use the Split Lines functionality to add new items and the document’s Net Total remains within the Tolerance Limit, then the Matching process will not be activated.
4. The quantity of the item was increased so that the amount in the document exceeds the total sum in the related Purchase Order.
5. The discount amount in the Invoice on the item or document level was added or changed exceeding the Tolerance Limit.
6. The document or item currency was changed, regardless of the Tolerance Limit settings.
Here is an example of the Receipt-to-PO Matching process when an item quantity was increased so the amount exceeds the total sum in the related PO:
Cases Where the Matching Process Will Not Be Activated
The Matching process will not be activated in the following cases:
1. If the Document Custom Fields, Locations, Item Custom Fields, or other document fields get changed.
2. If the Tax was added to the document and the Total amount increased, whereas there was no Tax in the Purchase Order document.
3. If the Exchange Rate gets changed and it increases the document’s Total.
Also, in case the amount exceeds the limited budget, you will not be able to save the document.
4. If you use the Split Lines functionality to add new items and the document’s Net Total remains within the Tolerance Limit.
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 the Precoro Documents article and learn more about its work.