Vendor Setup - Reconcile overview

With matching, you do not decide whether the invoice or the purchase order amount is correct. Instead, you make the cost on the purchase order in Vendor Invoice Center Entry match the value on the invoice from the vendor.

During reconciliation, vendor invoices are identified as acceptable matches to your purchase order, based on percent and quantity or amount tolerance levels, whichever is less. This includes lines that are partially received if this calculation is within the line tolerance:

• (Invoice Qty * Invoice Cost) – (Invoice Qty * Receive Cost)

You can define tolerances at the system level in SA Administrator Options-Vendors-Receiving or at the vendor level. Use the Vendor Setup-Reconcile view to define tolerances at the vendor level.

The Use Vendor Reconciliation Tolerances option in Vendor Setup dictates whether system tolerances or vendor tolerances are used during purchase order matching. If you select the Use Vendor Reconciliation Tolerances option, all purchase orders from that vendor are matched according to the tolerances set up in Vendor Setup for that vendor. If this option is not selected, the system tolerances set up in SA Administrator Options-Vendors-Receiving are used.

There are three tolerances you can set up: quantity tolerance, line tolerance, and invoice tolerance. You also can set up two additional user-defined tolerances at the system level.

If the quantity, line, or invoice amounts are not within tolerance, they are displayed in Vendor Invoice Center Entry. You must fix them and perform reconciliation again. Tolerances can be defined as a percent difference up to a specific amount. You can also leave the Tolerance fields blank, in which case invoices must match received purchase orders exactly to be considered a match. Capitalized addons are not counted in any of the tolerances.