Automatic Matching of Batch Supplier Invoices to Purchase Order

This document explains how supplier invoices received in 'Supplier Invoice Batch. Open' (APS450) are matched to goods receipt transactions or purchase orders (POs). The types of invoices that can be included in the matching are batch supplier invoices and self-billing invoices.

The invoice matching is automatically performed when you select option 9-'Update to AP ledger' for a single invoice or for a range of invoices using F19 in (APS450/B). The update can also be performed from 'Supplier Invoice Batch. Select Operation' (APS455).

Basic Requirements for Invoice Matching

Matching Priorities

M3 BE creates invoice lines based on goods receipts or PO lines using the following priorities. If priority 1 cannot be used, priority 2 is selected instead, and so on.

Priority

Comment

1. A specific goods receipt transaction is selected for the receiving number.

Receiving number and receipt type 1 (Standard goods receipt transaction) must exist for the invoice line in 'Supplier Invoice Batch. Open Lines' (APS451/E).

2. All goods receipt transactions for a specific delivery note number are selected.

The delivery note number must exist in (APS451/E).

3. All goods receipts for a specific PO line are selected.

These values must exist in (APS451/E): PO number, PO line, and PO line suffix.

4. If no goods receipt transaction is found, the PO line is selected to create an invoice line of line type 2.

These values must exist in (APS451/E): PO number, PO line, and PO line suffix. Alternative 1, 2, or 3 must be selected in the 'Invoice approval condition 1' field for the supplier in 'Supplier. Define Purchase & Financial' (CRS624/F).

In case of mismatch

Situation

Action

1. An invoice line is matched to several goods receipt transactions but the invoiced quantity and received quantity do not match.

The difference in quantity is stored on the last invoice line in the invoice.

2. The invoice is not approved for payment since not all invoice lines could be matched or because values are missing.

Complete the matching manually in 'Supplier Invoice. Recode' (APS110).

The importance of sequence numbers of line charges

Any line charges (invoice line type 5) that are connected to the PO line in 'Purchase Order. Connect Charges' (PPS215) (the MPOEXP table) must have the same sequence number in (APS451/E). M3 treats a line charge without a sequence number or another sequence number as a new, manually added charge. If a line charge is connected to the PO line and it either lacks a sequence number or has a different sequence number in (APS451/E), the line charge will be doubled during invoice matching at the invoice line level. The line charge with the incorrect sequence number is added to the line charge connected to the PO line.

If a sequence number is missing, a warning message is displayed when you validate the invoice in (APS455). The sequence number can be added manually.

Invoice matching at invoice header level

By enabling parameter 410-'Block failed inv matching on PO header level' in 'Settings - Accounts Payable' (APS905), 'Invoice matching on PO header level' is managed in a specific manner. Invoice matching based on the purchase order defined for the invoice header in (APS450/E) can result in one of these scenarios.

For all scenarios: If account entries are created during the matching and there is a variance between the invoice lines and the total invoice amount, all invoice lines are approved, provided that the variance is within the limits defined in 'Settings - Supplier Invoice Matching' (APS900). If the variance is approved, it is booked based on accounting rule PP20-240 or distributed to the invoice lines. In the latter case, it is booked as a normal price variance. If the variance is not approved, it is booked on a clearing account to be matched manually in (APS110). If parameter 'Block failed inv matching on PO header level' is enabled in (APS905), the invoice is not transferred to 'Accounts payable'. Instead, the invoice status is updated to 'Invoice matching failed'.

Parameter 410 - Block failed invoice matching on PO header level

In some situations, when working with supplier invoices in ''Supplier Invoice Batch. Open' (APS450) you must first perform invoice matching on PO header level, and if the invoice matching is successful, the invoice is transferred to 'Accounts Payable'. If the supplier invoice matching fails, it is in some situations necessary to hold the invoice and transfer the supplier invoice lines to (APS450) and perform a more detailed invoice matching.

Alternatives:

0 = No

1 = Yes

2 = Inventory items

If alternative 0 is selected, the invoice is always transferred to 'Accounts Payable' and accounted on the clearing account if the supplier invoice amount is outside the tolerance limits defined in 'Settings – Supplier Invoice Match' (APS900).

If alternative 1 is selected, and the supplier invoice amount is outside the tolerance limits defined in (APS900), the 'Invoice status' is updated to 79-'Invoice matching failed' in table FAPIBH.

If alternative 2 is selected, and the supplier invoice amount is outside the tolerance limits defined in (APS900), the 'Invoice status' is updated to 79-'Invoice matching failed' if the purchase order contains at least one line for an inventory item. If the purchase order only contains non-inventory lines, the invoice is transferred to 'Accounts Payable'.

Purchase order lines with one of these characteristics are considered as non-inventory items:

Note: When the supplier invoice matching fails, you can add a new invoice header and perform invoice matching on the line level instead. Supplier invoices in status 79-'Invoice matching failed' cannot be processed automatically, and should be deleted manually or by 'Supplier Invoice Batch. Select Operation' (APS455).

Scenario

Comment

1. Goods receipt transactions are found for all PO lines.

Account entries are created for all goods receipts.

2. Goods receipt transactions are found for all or some PO lines but the goods receipt is not complete for all lines.

The PO line is selected instead to create an invoice line of line type 2, provided that these prerequisites are met:

  • Alternative 3 (User is asked whether to select the PO line for lines with missing goods receipts) or 4 (PO lines with missing goods receipts are always selected) is selected for setting 320 in 'Settings - Accounts Payable' (APS905)
  • Alternative 1, 2, or 3 is selected in the 'Invoice approval condition 1' field in (CRS624/F).

If there is only a partial goods receipt for the PO line, two invoice lines are created: one line of type 1 (indicating that the line has been matched to a goods receipt line) with the received quantity and one line of type 2 with the remaining quantity.

3. No goods receipt transactions are found.

The PO line is selected to create an invoice line of type 2, provided that these prerequisites are met:

  • Alternative 2 (User is asked whether to select the PO line instead) or 3 (The PO line is automatically selected) was selected in the 300 field in (APS905).
  • Alternative 1, 2, or 3 is selected in the 'Invoice approval condition 1' field in (CRS624/F).

Invoice Matching-Related Fields in FAPIBL

This table lists the values in the invoice line table (FAPIBL) that are used for matching on the invoice line level.

Field

Description

Mandatory

E6CONO

Company

Yes

E6DIVI

Division

Yes

E6PUNO

PO number

Yes

E6PNLI

PO line number

Note:  If a value is missing in the FAPIBL table, it is automatically retrieved from the PO line table (MPLINE).

Yes

E6PNLS

Sub-number of purchase order line

Note:  If a value is missing in the FAPIBL table, it is automatically retrieved from the PO line table (MPLINE).

Yes

E6REPN

Receiving number

No

E6RELP

Receipt type

No

E6ITNO

Item number

Yes

E6PUUN

PO unit of measure

Yes

E6IVQA

Invoice quantity, unit of measure

Yes

E6GRPR

Invoice price, PO price unit of measure

Yes

E6PPUN

Invoice price unit of measure

Note:  If a value is missing in the FAPIBL table, it is automatically retrieved from the PO line table (MPLINE).

Yes

E6PUCD

PO price quantity

Note:  If a value is missing in the FAPIBL table, it is automatically retrieved from the PO line table (MPLINE).

Yes

E6IVCW

Invoiced catch weight

No

E6DIPC

Invoiced discount

No

E6VTCD

VAT code

Note:  If a value is missing in the FAPIBL table, it is automatically retrieved from the PO line table (MPLINE).

Yes

E6SUDO

Delivery note number

No

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