Overview
The PO-AP Match process completes the "3-Way Match" between the Purchase Order, Packing Slip document, & the Vendor's Invoice. This is a requirement to be met before paying the Vendor. This activity validates that the ordered quantity was received at the negotiated unit price.
Process Limitation: Currently, the system is designed to display and process only 200 Receipts at once via UI.
IMPORTANT During the PO-AP Match process, for each PO Receipt transaction, the system creates one or more PO-AP Match Invoice Lines as detailed in the PO-AP Match Invoice. The resulting number of PO-AP Match Invoice Lines created per batch should not exceed the value configured on the custom setting 'MAX_TTAPLINES_PER_POAPHDR' (maximum allowed limit is 800).
EXAMPLE A Purchase Order is issued to buy 100 widgets at a unit price of $1.00 each from ABC Manufacturing Company. When the units arrive, the Receiving Department performs a "Purchase Order Receipt" (or "PO Authorization" for Indirect Material or Service-type item) for the actual units received while also entering other required information contained on the Packing Slip. This process receives the units into inventory (at the Unit Price listed on the Purchase Order) & records the associated liability to the Vendor (e.g., Debit: Inventory, Credit: Accrued Payable). When the Vendor's Invoice arrives, the A/P clerk completes the "3-Way Match" by including it in a "PO-AP Match" Batch, which again validates the units received against the Purchase Order Receipt & what was charged on the Vendor's Invoice, & the unit price on the Purchase Order to that on the Vendor's Invoice. Suppose a unit price or quantity variance exists between the Vendor's Invoice & Purchase Order unit price or Purchase Order Receipt. In that case, the user may elect to pay based on the Vendor's Invoice (assuming that the variance is acceptable or immaterial & 'not worth' the cost of research), which would generate the appropriate price or quantity variance journal entry. The result of this "PO-AP Match" process is the automatic creation of the Vendor's voucher record in the Accounting System, for which payment can be scheduled & made.
Application
The "PO-AP Match" page provides an easy, intuitive means of:
-
Filtering unmatched Purchase Order Receipts and sorting receipts retrieved (e.g., by Vendor, PO Number, Receipt Date range).
-
Matching one or multiple receipts and Purchase Orders to recently received Vendor Invoices.
-
When the Vendor Invoice is received and matched to a Purchase Receipt transaction for a Purchase Order carrying the Bank Fee indicator, the Bank Charge Amount is specified by the user and added to the Payable Invoice.
-
Adding miscellaneous Invoice charges (e.g., non-PO Lines such as Freight, Sales Tax, etc.).
-
Record adjusting entries for differences between units received vs. units invoiced (PO-Invoice Quantity Variance) and Unit Price on the Purchase Order versus the Unit Price on the Vendor's Invoice (PO-Invoice Price Variance).
-
Upon Closing the Batch, automatically create Payable Invoice Vouchers in the Accounting System to manage and process payment.
IMPORTANT The defaulting behavior of the "PO-AP Match" process is controlled by the "PO-AP Control" record set for each Company, which can be edited at any time. This control record is automatically created when a new RS Company is created.
Navigation
PO-AP Match
Step 1: Enter the required data to select the Purchase Order Receipt to match the Vendor Invoice.
Fields
AP Match Indicator: The value chosen determines the system's process.
NOTE In Rootstock Financials, while creating the PO-AP Match Invoice during the PO-AP Match process, the system will check for the Vendor Company for the combination of the 'Vendor Master' and the Financial Company Master associated with the 'Company' on the PO-AP Match Invoice. If not found, the system will automatically create the Vendor Company as mentioned below:
-
If the 'Company' on the PO-AP Match Invoice matches the Company of the 'Default Company for Vendor' associated with the 'Default Vendor Class' on the System Defaults, the Vendor Company is created using the 'Vendor Master' on the PO-AP Match Invoice and the 'Default Vendor Class' on the System Defaults.
-
If the 'Company' on the PO-AP Match Invoice does not match the Company of the 'Default Company for Vendor' associated with the 'Default Vendor Class' on the System Defaults, the system will check for a Vendor Class Company for the combination of 'Default Vendor Class' on the System Defaults and the Financial Company Master associated with the 'Company' on the PO-AP Match Invoice, if found, the Vendor Company is created using the 'Vendor Master' on the PO-AP Match Invoice and that Vendor Class Company.
-
Close Batch: By selecting this value from the Picklist, the system will retrieve a Picklist (sorted from the oldest to the most current) of all open PO-AP Match 'Batch Numbers'. By individually selecting a Batch, the user can perform the 'Close Batch: Display Invoices' or 'Close Batch' buttons. 'Display Invoices' will show all the PO-AP matched Invoices within the selected Batch. Each can be opened in a new tab to look at PO-AP Match Invoice / PO-AP Match Invoice Lines & can be deleted, only if not Closed yet, to Re-Invoice or Reverse Receipt. 'Close Batch' will close the Payable Batch & appropriate Payables Invoice Voucher is automatically created in the Accounting System.
NOTE When Close Batch is performed, the 'AP Batch Status' on the selected PO-AP Batch and 'Invoice Status' on the associated PO-AP Match Invoices will be changed to 'Transferred'.
NOTE In Rootstock Financials, once the Close Batch is performed, a Payable Session will be created, and the field 'Originating PO-AP Match Batch' on the Payable Session is updated with the PO AP Header. This is used to easily get the AP batches created for the PO-AP Match batch to reopen a Closed PO-AP Match batch. When reopening the closed batch, the Payable Session record created for the PO-AP batch will be deleted.
-
Reopen Closed Batch: By selecting this value from the picklist, the system will retrieve a list of PO-AP Headers modified in the last 90 days with the 'AP Batch Status' value as 'Transferred'. By individually selecting a Batch, the user can perform the Reopening of Closed Batch using the 'Reopen Batch' button.
IMPORTANT
-
The user can reopen a closed PO-AP Batch only when using any of the below 'Financial System Interface' on System Configuration:
-
Dynamics AX
-
EXO
-
Intacct
-
QuickBooks
-
QuickBooks Desktop
-
Rootstock
-
Workday
-
The batch can be reopened only if the flag 'Export Needed' is True on the PO-AP Match Invoice when using any of the above non-Rootstock Financial Interface.
-
When using the Rootstock Financials Interface, the Batch can be reopened if the Payable Session created for the PO-AP batch is not posted.
NOTE When Reopening the Closed Batch, the system will change the PO-AP Header's 'AP Batch Status' to 'Open'.
Buying Division: This defaults to the user's Current Division.
Select Receipts From: This provides a means of retrieving unmatched Purchase Order Receipts dating back to a certain, defined date. This earliest date in the range can be set manually or automatically by setting the Receipt Select Days on the PO-AP Control Record. The value in this field determines how far back to select those unmatched Purchase Order Receipts for processing during the PO-AP Match process.
EXAMPLE Today's date is 8/31/2024, and the value set is '30'; the date automatically populated in the 'From' field is 8/1/2024.
The defaulting date can be manually overridden at any time.
-
From: This field sets the ‘From’ date when retrieving unmatched Purchase Order Receipts.
-
Thru: This field sets the 'Thru' Date when retrieving unmatched Purchase Order Receipts. It defaults to Today's Date but can be overridden.
Vendor: This is a “Lookup” to the Rootstock Vendor Master, & provides a means by which the user can filter & retrieve unmatched Purchase Order Receipts by Vendor Name. Start typing the Vendor Name into the search field & the system will automatically filter through the available Vendors until it locates the specific desired value. This is extremely useful when Accounts Payable vouchering responsibilities are divided alphabetically across many employees. If this search field is left 'blank', the system will retrieve all unmatched Purchase Order Receipts. If the Vendor is selected and the Purchase Order Header field is left blank, the system will retrieve all unmatched Purchase Order Receipts across multiple Purchase Orders.
IMPORTANT If the user is using 19.17-19.25 and wants to enable the ability to match a Vendor Invoice to multiple Purchase Orders, make sure the Application Settings for 'useNewPOAPMatchUI' has Value = true. As of 19.25, only the new UI is available, and no setup is needed.
Setup > Custom Setting > Application Settings > Manage button > Name = useNewPOAPMatchUI > Value = true
Purchase Order Header: If a Vendor is selected in the field above, this lookup field will allow the user to select a specific Purchase Order from the chosen Vendor. If no Vendor is selected, this option is not available.
NOTE Leave this field blank to add multiple Purchase Orders to the same Invoice.
EXAMPLE If the user desires to add Purchase Order Lines from multiple dates and Purchase Orders, leaving this field blank will display all the Purchase Order Lines from the selected date range.
Company: This field is reference-only, displaying the Rootstock Company in which the selected “Buying Division” resides. The field is a “Link” that can be clicked on to navigate to the Company record or “hovered” over to view details about the Company.
Batch Number: This system-generated current Batch # is derived by adding one to the “Last AP Batch Number” on the AP-PO Control record.
Invoice Amount Source: This field is initialized as defined on the PO-AP Control record & can be overridden here. When set to a ‘Purchase Order Receipt’, the amount is set from the Purchase Order /Purchase Order Receipt. If set to ‘Vendor Invoice, ’ the amount is set from the Vendor’s Invoice.
Retain the Current Batch Number: Every time the user opens the PO-AP match page, a new Batch # is generated & shown in the 'Batch Number' field. If there is already a Batch In-Progress (Status Open), then that Batch # is shown along with the number of transactions within the same. If the user doesn't want to use the existing Batch #, unchecking this checkbox will create a new Batch #.
From Line: Filter Purchase Order Receipts having Purchase Order Line - Line Number equal to or greater than the specified value. Blank is treated as 1.
To Line: Filter Purchase Order Receipts having Purchase Order Line - Line Number equal to or less than the specified value. Blank is treated as 999.
NOTE The From Line and To Line fields are enabled for the user input when the 'Purchase Order Header' is specified.
Button
Select PO Receipts: Clicking this button will populate the lower grid with receipts that match the above parameters. If the resulting list is incorrect, simply reloading the page will put the user back into the selection mode.
PO-AP Match Line Detail
There are several subsections associated with the details of the Invoice the Vendor has supplied, & matching it to specific Purchase Order Receipt Line(s). Noteworthy sections & fields include:
Step 2: Enter the Invoice Information section
This section contains fields for user input from the Vendor's Invoice. This information will be used to auto-create the appropriate Payable Header / Invoice in the Accounting System. All three fields are required & cannot be left blank. This data must be provided before selecting any Purchase Order Receipt Line(s).
Fields
Vendor Invoice Number: Invoice Number supplied by the Vendor on their document.
Invoice Date: Date on the Invoice supplied by the Vendor on their document.
Total Invoice Amount (including Purchase Order Receipt Lines, Freight, Tax, etc.): The Invoice Total as supplied by the Vendor on their document.
Bank Charge Amount: This field carries the amount of the Payment Related Bank Charge the Buyer is responsible for.
NOTE The Bank Fee amount is not part of the Vendor Invoice but is part of the AP Invoice.
IMPORTANT If the user neglects to specify the Bank Fees on Purchase Transactions before they are transferred to Accounts Payable, then the user must create an AP Debit Memo referencing the same Bank Fee account and include it in the Payment made to the Vendor.
Step 3: Receipts section
This section contains unmatched Purchase Order Receipts based on the data provided in the PO-AP Match Header section. The retrieved Purchase Order Receipts are placed in a column format with additional fields to input 'user-supplied data'.
Fields
Filter: This field applies only to the sorted column to further filter the retrieved, unmatched Purchase Order Receipts ('*' is a wildcard). The Purchase Order Receipt Lines order is based on the value set on the 'Process Option Picklist', found on the PO-AP Match Control record. However, the user can change the sort order &/or the field in which the receipts are sorted simply by clicking on any of the column headers. An up arrow ('↑') symbol next to a column heading denotes that this column sorts the list view in ascending order. A down arrow symbol denotes that this column sorts the list view in descending order.
Selection (X) Checkbox: Click the checkbox at the far left side of each Receipt Line to select specific Purchase Order Receipt records from the list view. Once the first Purchase Order Receipt line is selected, the system will automatically filter the search to exclude any Purchase Order Receipt line that does not match the Vendor & PO # from the line selected.
EXAMPLE The initial retrieval of unmatched Purchase Order Receipts may have resulted in multiple Vendors (if the Vendor lookup feature on the PO-AP Match Header was not utilized) & POs. By selecting the first (or any, for that matter) Purchase Order Receipt Line, only those Purchase Order Receipts that match both the Vendor & Purchase Order # from that line will remain on the list view.
Vendor Name: This column is auto-populated with the Vendor Name associated with the Purchase Order Receipt Line.
PO Number: This column auto-populates the Purchase Order # associated with the Purchase Order Receipt Line.
Receipt Number: This column is auto-populated with the Receipt #, which was automatically assigned by the system during the Purchase Order Receipt process.
Item Number: This column is auto-populated with the Item # associated with the Purchase Order Receipt Line.
Packing Slip No.: This column is auto-populated with the Packing Slip # entered by the user during the Purchase Order Receipt process (the Packing Slip # from the Vendors' Packing Slip delivered with the goods received).
Maint. Currency: This column is auto-populated with the system currency code (ISO) associated with the Vendor's billing currency & in which they will be paid.
AP Entry: This 3-column subsection is where the user supplies the 'Quantity' & 'Unit Price', (the system automatically calculates the extended AP Entry Amount), which effectively defines the value for this Purchase Order Receipt Line that the vendor will be paid. The user can manually input the 'Quantity (Qty)' & 'Unit Price', or allow these values to be auto-populated (either sourced from the 'PO Receipt' or 'Invoice' entry values) using the 'Invoice Source' setting on the PO-AP Control record. These fields become available for user entry when the Filter box is checked.
Receipt: This 3-column subsection is auto-populated with the 'Quantity' from the Purchase Order Receipt & the 'Unit Price' from the Purchase Order Receipt to calculate the extended Receipt Amount automatically. These values are not editable.
Invoice Qty: Finally, this 3-column subsection is where the user supplies the 'Quantity' & 'Unit Price' taken from the Vendor's Invoice, which automatically calculates the extended Invoice Amount. These entries are for informational purposes only & are either auto-populated if the 'Vendor's Invoice Information Mandatory' checkbox on the PO-AP Control record is unchecked or manually input checked.
Cost Accounting Consideration: If the 'Quantity' & 'Unit Price' entered in the 'AP Entry' subsection are different when compared to the auto-populated values in the Receipt subsection, the system will record either a PO-Invoice Price or a PO-Invoice Quantity variance as part of the Payable Invoice created.
NOTE If the amount on the selected receipt is greater than the 'Total Invoice Amount', then a negative variance value will be calculated on the 'Amount Remaining' field under the Line/Account Entry section. If the amount on the receipts is less than the 'Total Invoice Amount', then a positive variance value will be calculated on the 'Amount Remaining' field.
Step 4: Vendor Details section
When the first Purchase Order Receipt Line is selected, the system will retrieve all the Vendor information set on the Vendor Master (Terms, Due Date, Addresses, Contact Information, etc.) & populate that information in this section. Until then, these sections are not visible.
Fields
The editable fields are the following:
Terms: The user can override the default value with pre-defined values (established on the Credit Terms object).
Due Date: This will automatically recalculate to the proper Due Date when the Terms are changed; however, the user can manually change it by simply overriding the Date in this field.
WHT Transaction (only for Rootstock Financials): If checked, it represents that Withholding Tax is applicable—defaults from Purchase Item Master.
Withholding Tax Class (only for Rootstock Financials): When the above is checked, the picklist shows the available WHT Tax Class.
Pay Type (only for Rootstock Financials): Picklist field with values Check, EFT, Bank Card, Cash. When defined, it will be used to set the Pay Type on the resulting Payable Transaction. If not, then defaults from the Vendor Company.
Bank Card Account (only for Rootstock Financials): If the Pay Type is Bank Card, it shows Bank Account records.
Step 5: Subtotals section
This subsection provides the user with the following information about the status of the matching process:
Total Amt of Receipts: This displays the total value of receipts that have been matched.
Total Invoice Amount Due: The sum of all AP Entry Prices where the line has been selected. This will not include Service items. Suppose the user selects more Purchase Order Receipts, resulting in the total value exceeding the 'Total Invoice Amount' input on the 'Enter Invoice Information' subsection. In that case, the system will display this value as a caution.
Step 6: Line/Account Entry section
This subsection allows the user to include additional charges to the Payable Invoice transaction (such as tax, freight, etc.) that appear on the Vendors Invoice but are not associated with Purchase Order Receipts.
NOTE When using Rootstock Financials, every Purchase Order Line has an individual Line/Account Entry line.
Fields
Receipt Summary Line: The first Line/Account Entry line summarizes the total inputs for the Purchase Order Receipts, including:
Amount: Amount of the Invoice.
Account: Account for the amount and can be overridden.
IMPORTANT This Account field will be enabled, and the default account can be changed when the field 'Accrued AP Account Override' on the associated Company Master is set as True.
Line Description: Description of the line, user-defined when manually adding a GL Line.
VAT Class: VAT class that is associated with the line. It is used to calculate the VAT amount.
NOTE This field will be enabled on the transaction referencing the Purchase Order Receipt when the VAT is not recognized upon Delivery (when 'VAT Recognition Option' on System Defaults is set to 'Upon Invoice' or 'Upon Payment') and the VAT Class used on the Purchase Order Line has 'PO Price Excludes VAT' checked. Otherwise, it will be disabled.
VAT Added To Amount: The VAT amount to be added to the corresponding GL line amount. If PO Price Excludes VAT is checked on the corresponding VAT class, then the VAT Added To Amount is calculated; otherwise, it will be zero.
VAT Included In Amount: The included VAT amount is displayed. If PO Price Excludes VAT is unchecked on the corresponding VAT class, then the VAT Included in Amount is calculated; otherwise, it will be zero.
NOTE If Intra EU Community VAT in the corresponding VAT Class is checked, both VAT Added To Amount and VAT Included In Amount will be zero.
Dimension 1 - 8: Values auto-populate from the system & can be overridden.
IMPORTANT These Dimensions fields will be enabled, and their default values can be changed when the field 'Accrued AP Account Override' on the associated Company Master is set as True.
NOTE
-
The Purchase Order Receipt or PO Authorization transaction debits Inventory (or an Operating Expense Account, if an Indirect or Service-type Item), & credits Accrued Accounts Payable; therefore, the creation of the Payables Invoice will debit Accrued Accounts Payable & credit Accounts Payable.
-
When a Price Variance Invoice Line entry is created, the VAT class is fetched from the Purchase Order Line and used for VAT calculations.
Project: This field details the project associated with this Invoice Line.
Project Charge Code: This field details the Project Charge (Job) Code associated with this Invoice Line.
Buttons
Add Line/Account: Should the 'Amount Remaining' field found under the Account box be greater than zero ('Total Invoice Amount Due' is greater than the 'Total Amt of Receipts') or be a negative value ('Total Invoice Amount Due' is equal to zero or lesser than the 'Total Invoice Amount Due'), clicking the 'Add Line/Account' button will create an additional expense line for this remaining amount to be included in the Payable Invoice Voucher. Using the Picklists for Account, VAT Class, and Dimensions, along with a user-defined 'Line Description', the user identifies the appropriate values for each. The Multiple GL Lines can be added for the various non-PO Receipt Items until the 'Amount Remaining' is zero.
Submit: To execute the PO-AP Match & add it to the current PO-AP Match batch, the user clicks the 'Submit' button.
NOTE The batch is not closed & transmitted to the Accounting System until the 'Close' process on the 'AP Match Indicator' is run.
SEE ALSO
PO-AP Match Info and Set Up
PO-AP Match Workbench - Lightning
PO-AP Control
Purchasing Overview
Vendor Master
PO Receipt Transactions
Value Added Tax (VAT) Overview
Payable Transaction
