Matching Supplier Invoices to Purchase Orders

This document explains how you match an approved or unapproved supplier invoice to the goods receipt lines connected to one or several purchase orders (PO) before paying the invoice.

The matching can be carried out immediately during invoice entry or afterwards. If there are no or only minor discrepancies between the invoice price and the purchase order price, the process can be completely automated.

For information about how to match batch invoices or scanned invoices in 'Supplier Invoice. Process Automatic' (APS050), see Automatic Matching of Batch Supplier Invoices to Purchase Order.


As an outcome of this process, these changes are made in M3:

Before you start


The workflow for invoice matching depends on the situation, the information included on the invoice and your company routines. To make it easier to understand the different steps without losing the overview, we present the workflow in two separate sections: Workflow - Overview and Workflow - Detailed

On the detail level, you can choose from among nine different flows ("Next Manual Steps" or NMS). The difference between them is that the higher the number of the flow, the more automated it is. For example, if you select flow 5, all steps included in flows 2, 3 and 4 before the start step of flow 5 are automatically carried out. The rest you do manually.

A rule of thumb is that flows 3 and 4 are used if the invoice refers to more than one PO, whereas flows 5 to 8 are used if there is only one PO referred to in the invoice.

You enter the number for the workflow to use during:

For electronically received invoices, the matching is completely automatic.

Follow these steps - Overview

  1. Enter New Invoice

    Enter a supplier invoice by selecting a FAM function detail record in 'Supplier Invoice. Record' (APS100). This record controls the workflow to use for invoice matching. However, the flow can be manually overruled during invoice entry. Depending on the workflow, the steps that follow are more or less automated.

  2. Select Previously Entered Invoice to Recode

    For invoices that are incompletely matched in (APS100) or 'Supplier Invoice. Process Automatic' (APS050), you need to recode and/or approve the unapproved invoice lines. You make the necessary adjustments starting in 'Supplier Invoice. Recode' (APS110). There you can also match invoices that were not matched previously, regardless of whether they are approved or not approved for payment.

  3. Select Goods Receipt Transactions

    If the goods are reported as received in 'Purchase Order. Receive Goods' (PPS300), you select the goods receipt lines to which the invoice should be matched.

    You can do this either directly by manually selecting certain lines in 'Supplier Invoice. Select Transactions to Match' (APS351), or indirectly by selecting a purchase order, delivery note number or supplier order number in 'Supplier Invoice. Select to Match' (APS350).

  4. Select PO Lines

    If the goods have not been received before the invoice, or if the goods receipt has been deleted in 'Purchase Order. Display Line Transactions' (PPS330), then there are no goods receipt lines to use for the matching.

    In this case you select the PO lines instead in (APS351).

  5. Review Invoice Lines and Create Account Entries for Approved Lines

    Review the invoice lines that were created based on your selection and adjust them, when necessary, so they correspond to the (physical) invoice received from the supplier. You have several options, among them:

    • Change the quantity and amount per line proposed from the goods receipt
    • Add a charge for all invoice lines or for a specific line
    • Manually post variances within allowed limits by using an accounting option

    If variances in price or quantity in excess of the allowed limits were created, you can create a debit note or a debit note request. The note/request's amount will automatically be calculated as the variance in price/quantity between the invoice lines and the goods receipt/purchase order lines.

    When all lines are approved, you create account entries for the lines. You do this in 'Supplier Invoice. Match GR Line' (APS360).

  6. Create Voucher

    Check that the amount to distribute is down to 0 in (APS360). If necessary, open any lines that need adjusting and make the necessary changes. This could mean writing off any remaining variances within limits with an accounting option, for example.

    When you have checked that everything is OK, create a preliminary voucher for all account entries connected to the invoice matching. You do this by exiting (APS360). After that, you can enter more invoices in (APS100). The general ledger is then updated when the invoice processing is finished.

Follow these steps - Detailed

  1. Enter Supplier Invoice or Select Invoice on Clearing Account

    See activities 1 and 2 in the Workflow Overview section.

  2. Decide How to Proceed in (APS360)

    After you have entered an invoice number in (APS100) or selected option 11 for an invoice in (APS110), 'Supplier Invoice. Match GR Line' (APS360) is started. There you decide how to proceed with the matching

    You start in (APS110) in order to review, adjust and approve already recorded invoice lines. During invoice entry in (APS100), as well as in (APS110), you can choose whether to match the invoice against a general number, such as PO number, delivery note number or supplier order number in (APS350), or against the goods receipt lines in (APS351).

    When to use as starting step:

    • You want to adjust invoice lines in an invoice manually posted to a clearing account in (APS100).
    • You want to adjust and approve invoice lines for an automatic invoice that were not approved during the automated match in 'Supplier Invoice. Process Automatic' (APS050).

    This step would not normally be relevant when entering definite invoices in (APS100), since there are no existing invoice lines to review. A smoother flow would be to start with step 3 or 4.

  3. Select PO, Delivery Note or Supplier Order Number

    In 'Supplier Invoice. Select to Match' (APS350), select the number stated on the invoice to automatically select all connected goods receipt lines.

    When to use as starting step:

    • You already know the delivery note number, PO number of supplier order number.
    • The invoice refers to more than one PO.
  4. Select Goods Receipt Lines or PO Lines

    Carry out this activity in 'Supplier Invoice. Select Transactions to Match' (APS351). See activities 3 and 4 in the Workflow - Overview section.

    When to use as starting step:

    • You do not know the exact details or only know the item number, for example.
    • You have registered several goods receipts, but only received an invoice applicable to one of them.
    • You receive the invoice before the goods.
    • The invoice refers to more than one PO.
  5. Create Invoice Lines

    After selecting the goods receipt or purchase order lines, you create the corresponding invoice lines by simply pressing a function key in (APS350) or (APS351).

  6. Review/Adjust Invoice Lines

    Carry out this activity in (APS360).

    When to use as starting step:

    • The invoice refers to only one PO.
  7. Check Invoice Lines

    Check the PO order price for each line against the invoiced price in (APS360) and the PO quantity or goods receipt quantity for each line against the invoiced quantity in (APS360). This is done automatically by pressing a function key. If there are any variances in price, there is an automatic check against the user-defined variance tolerances in 'Settings – Supplier Invoice Match' (APS900). You receive a message confirming the result of the check. If the invoice lines were not approved, you return to step 6 to adjust the lines and, for example, create a debit note.

    When to use as starting step:

    • The invoice refers to only one PO.
    • You suspect that you may need to adjust values manually
  8. Create Account Entries

    After you have checked the invoice lines, create account entries that offset the goods receipt transactions for all approved lines. Post any unapproved lines to a clearing account, for example

    When to use as starting step:

    • The invoice refers to only one PO.
    • The matching does not seem to be problematic.
  9. Create Voucher for the Invoice Matching

    Create a preliminary voucher in (APS360). See activity 6 in the Workflow – Overview section.

    When to use as starting step:

    • The invoice refers to only one PO.
    • The matching does not seem to be problematic.
  10. Enter PO Number in 'Supplier Invoice. Record' (APS100) or 'Supplier Invoice. Recode' (APS110)

    For the most automated way to match an invoice, enter the purchase order number in (APS100/E) or in (APS110). If there are no problems involved, all previous steps will be carried out automatically and you will not leave the panel.

    It is also possible to start this automated matching in (APS350) or (APS351). If you do so, you can match the invoice not only to one, but to several purchase orders.

    If there are discrepancies exceeding any user-defined variance tolerances in (APS900), or if all of the goods on the purchase order have not been received, you stop at step 6; that is, in (APS360). This means that minor variances are automatically written off.

    When to use as starting step:

    • The matching does not seem to be problematic.
    • You want to automate your supplier invoice entry as much as possible.
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