To add a new matching tolerance or change an existing one, navigate to Setup → AP Automation → Invoice settings → Matching tolerances
More information about the logistics invoice matching process can be found at PO invoice- Matching invoices
Create a new matching tolerance
In the Matching tolerances overview, click the button.
A new Matching tolerance can now be created using four tabs:
- General
- Conditions
- Tolerances
- Audit
Tab General
In the General tab, enter the description of the matching tolerance, the company to which the matching applies and the weight of the tolerance. In the event that multiple matching tolerances are found, the one with the highest weight counts.
A matching tolerance is only in use when active is checked.
Tab Conditions
The Conditions tab indicates for which matching type this matching tolerance will be used. One or more vendors can be selected. If left blank, it applies to all vendors. In addition, a price difference can be automatically distributed across the lines or posted under an additional cost line.
If a price difference falls within the tolerances, this coding line may be automatically created when the invoice is further processed (and no other action has yet been taken to post the difference). With the invoice in AP Automation, two icons are available at the line level with which one of the two options can be selected.
Default coding line
Within the created matching tolerance it is possible to immediately 'resolve' differences between the order lines and the net invoice amount. Instead of manually performing this action, it can also be automated. The difference can be divided over all existing order lines (percentage distribution), but an additional cost line can also be created directly. For this last option you must know how the line should be coded. This can be done by creating a default coding line (setup – AP Automation – coding lines).
Tab Tolerances
The Tolerances tab indicates the exact tolerances that can be matched with. Before a match, it is checked whether the deviation falls within both limits (percentage and absolute). If the deviation falls outside the percentage limit or outside the absolute value (or both), there is a mismatch.
An upper or lower quantity limit can also be specified.
For example, if the matching tolerance indicates that the upper limit is 10% and the lower limit is €20.00, then the invoice amount may be up to 10% higher or €20.00 lower than the order amount.
It is also possible to enter an upper or lower quantity limit. This is the percentage by which the invoiced quantity of a particular product may differ from the received quantity.
It is also possible to indicate that a mismatch occurs when there are additional costs. The additional cost limit can be entered after the corresponding checkbox has been checked.
If a mismatch is always desired for the supplier in question, the force mismatch checkbox can be checked.
Tab Audit
In the Audit tab you can find a brief overview of the previous versions of this Matching Tolerance and when, by whom and why it was changed. By clicking on one of the lines you can see how the Matching tolerance was set at the time.
When changing and saving a Matching Tolerance, you will be asked for the reason for the change.
Examples:
Upper and lower limit amount/price
This tolerance determines exactly how much an invoice price may deviate from an order price. There are 2 options: percentage or absolute. A certain percentage that may be deviated from
or a certain exact amount. It is also possible to enter both a percentage and an absolute amount.
The invoice may differ by ..% with a maximum of €..,-
So, for example, the deviation may be 1% with a maximum of €10.
For example, if
- a percentage of 6% is set
- an absolute amount of €20 is set
- the invoiced amount is € 1000 but differs by € 50 from the order amount
Then there is a mismatch. The amount by which the invoice differs falls within the set percentage but is higher than the absolute amount. Furthermore, a distinction is made between the lower and upper limits.
It is possible that an invoice price deviates by a larger amount if it is cheaper than the order price than if it is more expensive. In that case, you can reduce the upper limit (percentage and/or amount) by entering a lower value.
Quantity upper and lower limit
It is also possible to enter a limit quantity. This is the percentage by which the invoiced quantity of a particular product may differ from the received quantity.
For example: you order 2.5 kilos of cheese. Using the upper limit quantity you can indicate that you accept it when 3 kilos are invoiced, but if it is more than 3 kilos (in this case it deviates by more than 20%), you no longer accept it. By entering an upper limit quantity of 20% for the supplier in question, this rule becomes valid.
The lower limit on quantity can also be set. This will then work as follows:
If a certain quantity has been received on an order, but less is invoiced, the % for the lower limit is taken into account. Suppose the lower limit is set to 0, which means that if less is invoiced than received, this will be seen as a mismatch and the invoice will be submitted for approval.
For example: 500 ordered, 300 received and an invoice for 100. An invoice is expected for 300 because that is what was received. Suppose the lower limit is set to 0, the invoice will be submitted for approval. After all, 0 indicates that no difference is accepted in the matching.
Example 2: the lower limit is 10%. Ordered 500, received 300, invoiced 280. Then the deviation is 20. This falls within 10% (10% of 300 = 30), the invoice is matched.
Example 3: the lower limit is 10%. Ordered 500, received 300, invoiced 250. Then the deviation is 50. This is not within 10% (10% of 300 = 30), the invoice is mismatched and submitted for approval.