PO Matching Rules

PO Matching Rules will be set at Purchase Order (PO) level. PO Matching Rules are used to validate AP Invoices before making the payment to suppliers.

PO Matching rules can be set at five different levels to default them on to purchase order. Once matching rule is defaulted on to PO we have the option to override them as needed.

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 general Oracle ERP doesn’t let you make payments without validating the invoice. (There is a workaround to turn this off). Usually no organization want to turn-off matching rules because they want to ensure the payment is going out for the right reason.

2-Way:

In 2- way, we will compare two documents PO and Invoice.

Invoice Price < = Purchase Order Price

Invoice Quantity < = Purchase Order Quantity

3-Way:

In 3-Way you will compare 3 documents i.e PO+reciept+Invoice.

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

Invoice Price < = Purchase Order Price

Invoice Quantity < = Purchase Order Quantity

Invoice Quantity < = Received Quantity

4-Way:

In 4-Way you will compare 4 documents i.e PO+Receipt+Invoice+Inspection.
4-way matching verifies that acceptance documents and invoice information match within the quantity tolerances defined

Invoice Price < = Purchase Order Price

Invoice Quantity < = Purchase Order Quantity

Invoice Quantity < = Received Quantity

Invoice Quantity < = Accepted Quantity