Purchase order invoice

When a Purchase Order (PO) number is available on an incoming invoice, the system automatically subjects it to invoice matching. This process compares the details on the supplier invoice against the details on the corresponding PO in M3 to ensure accuracy before payment.

Dynamic matching levels

This solution is flexible and supports these two different levels of invoice matching. The matching method is determined dynamically based on its configuration:

  • Header-level matching: This method compares the invoice total amount against the PO total amount. It provides a faster, more efficient check typically used for trusted, high-volume suppliers.

    In M3, this corresponds to setting the Invoice matching (IMCD) field in Supplier Invoice. Batch Entry (APS450/E) to 2 - Inv matching on PO header level.

  • Line-level matching: This method performs a detailed check by comparing each individual invoice line such as item, quantity, and price against the corresponding PO line. It provides greater control and accuracy.

    In M3, this corresponds to setting the Invoice matching (IMCD) field in (APS450/E) to 1 - Inv matching on PO line level.

  • Purchase Order Subline Matching: Invoice matching capabilities are extended to support Purchase Order Sublines throughout the invoice validation and posting processes. When a Purchase Order contains sublines, such as for partial deliveries or complex goods receipt scenarios, the solution retrieves both Purchase Order line and subline information during matching.

  • During line-level matching, the system:

    • Retrieves all sublines associated with the matched Purchase Order line.
    • Evaluates subline details, such as received quantities and invoicing status.
    • Matches the invoice line to the most appropriate subline.

The default matching method is set in the header_line_matching field in the RPA arguments, but for added flexibility this setting can be overridden for specific suppliers through ION Business Rules that control the matching level. The solution’s configuration dynamically determines which matching level is applied, allowing supplier-specific rules to take precedence over the default.

After the invoice data is loaded into M3 using the configured matching level, the standard M3 business engine performs the final matching process, including checks against goods receipts in accordance with your core M3 configuration.

See Business rule configuration and dynamic matching logic.

Supplier invoices received in 'Supplier Invoice Batch. Open' (APS450) are matched to goods receipt transactions or purchase orders (POs).

See M3 Business Engine User Documentation Library (Cloud) and select M3 Financial Accounting > Managing Accounts Payable > Define Allowed Variances for Invoice Matching and Automatic Matching of Batch Supplier Invoices to Purchase Order.