| Oracle® Retail Invoice Matching User Guide Release 16.0.2 F10136-01 |
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Oracle Retail Invoice Matching (ReIM) allows you to verify merchandise invoice costs and quantities before payment. ReIM receives invoice data through Electronic Data Interchange (EDI), or data can be entered manually.
An automatic matching process verifies Invoice records against associated receipts. If invoices are matched to receipts within tolerance at a summary level, they are evaluated for best payment terms and posted to a staging table. The staging table interfaces with your accounts payable system, where payments are processed and corresponding accounting entries are posted.
If invoices and receipts are not matched at the summary level after a specified period of time, the auto-matching process attempts to match at the line level within tolerances. If matches are not identified at the line level, the process calculates a cost or quantity discrepancy. Discrepancies are sent to the Discrepancy Review List for resolution. You can resolve discrepancies by applying reason codes based on a set of defined actions (for example, charge-back supplier). The reason codes determine disposition of the discrepancies.
The auto-match process generates discrepancies so that you can begin manual identification of summary and detail level matches. You can resolve line-level discrepancies, and you can also access invoices and receipts.
This section provides a diagram and description of the invoice matching process flow. It also describes the auto-match process through a series of detailed examples. The various levels of auto-matching are explained, including one-to-one invoice matching and line-level matching. The section concludes with a discussion of best terms calculations.
This section provides a high-level explanation of the process flow in ReIM for each of the following areas:
Data entry
Matching
Discrepancy resolution
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Note: Documents drop out of the flow when they require no further processing. For example, if an invoice is matched in Step 2, Matching, the document would not continue to Step 3, Discrepancy Resolution. The document would be posted directly to the financial (AP/GL) staging table after Step 2. |
Data Entry
There are five ways in which invoices and other documents enter the ReIM system:
Electronic Data Interchange (EDI)
Invoices and credit notes uploaded as part of a batch are assigned a common control number, which is retained on the invoice table as a reference. The control number is assigned by the sender of the EDI file. It is displayed on the Invoice Maintenance screen and may be used for client reporting purposes.
As necessary, the EDI load process allows for the uploading of supplier's vendor product number (VPN) when neither the item number nor the UPC has been provided. The VPN and the supplier number, then, are used to look up the Oracle Retail item number. ReIM assumes the VPN is related to the supplier associated with the document. Note that the VPN number is not stored in ReIM; it is used to find the Oracle Retail item number which is then retained and used for processing within ReIM.
The item number lookup within ReIM includes the ability to lookup items by VPN.
EDI allows ReIM to upload the following documents:
Merchandise Invoices
The bills for goods or services received from a supplier or partner. Merchandise invoices may have both of the following:
Merchandise Costs: Costs that are associated with items on documents. Any other costs on an invoice are non-merchandise costs. The sum of the merchandise costs and non-merchandise costs is the total document cost excluding tax.
Non-Merchandise Costs: Costs that are indirectly associated with invoice items, such as freight or handling charges.
Non Merchandise Invoices
Bills for non-merchandise costs only (a snow plowing service, for example). Non-merchandise invoices cannot contain items. Either suppliers or partners can create non-merchandise invoices.
Credit Notes
Documents received from the supplier, often issued in response to a credit note request from the retailer, which results in a reduction of the retailer's balance owing to a supplier. A credit note request may be raised in lieu of a deduction from invoice (that is, a debit memo) resulting from invoice over-charges, RTVs, rebate bill backs, and so on. Credit notes follow a functional process flow separate from the invoice flow, where credit notes are matched against credit note requests.
RMS Documents
The RMS system also utilizes the EDI load to pass documents into ReIM. These documents can include: Consignment invoices, DSD Invoices from SIM, ERS Invoices, Obligations from RTM, and Debit Memos, Credit Memos, or Credit Notes Requests generated in RMS.
Single Entry
Documents can be entered via the Create Document dialog.
Single entry accommodates the same types of documents supported in the EDI as well as the following items (if not created automatically through other processes):
Debit Memo
A document created to support a deduction from the invoice being paid. Deductions may result from a price or quantity discrepancy. A debit memo also refers supplier billing for rebates, RTVs, and so on. Debit memos also can be created as 'stand-alone' documents (that is, created on-line, but not supported by any processes in ReIM or the merchandising system).
Credit Note Request (CNR)
A document sent from the retailer to the supplier, requesting a credit note for an over-invoiced amount (discrepancy) or in support of various billing activities (for example, rebates, RTVs). If a credit note request is not satisfied by the supplier in a timely manner, ReIM provides the ability to convert it into a debit memo (and include the number of the invoice to which it is assigned). Credit note requests also may be created as stand-alone documents.
Credit Memos
A document created to refund a supplier for an under-invoiced or over-billed amount (for example, for rebates not meeting threshold performance levels) amount. Credit memos also may be created as stand-alone documents.
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Note: Reversing a Debit Memo generates a Credit Memo in Approved status. The document ID of the Credit Memo is created by concatenating a prefix on to the Debit Memo document number. |
RMS Upload
Fixed and complex deals can be uploaded directly from RMS.
Group Entry
Group Entry allows entry of a batch of header only documents to be entered at once. It can be used for Merchandise Invoices, non-merchandise invoices, and Credit Notes.
Invoice Induction
Invoice Induction allows the user to use spreadsheets to enter most types of ReIM documents using a spreadsheet. The system will create blank templates which can then be customized b the user to facilitate the induction process.
Matching
Auto-Matching
Merchandise invoices are grouped by match key. Match keys are defined at the supplier or supplier group level. Possible match keys include; PO/location, PO, Supplier Site/Location, Supplier/Location, and Supplier Group/Location. ReIM requires these attributes in all merchandise invoices. ReIM accesses the merchandising system to determine what shipments (receipts) were created for the match key. The auto-matching process attempts to match invoice cost and quantities against receipt quantities at PO cost within user defined tolerances.
If the auto-matching process identifies cost or quantity differences outside of the pre-established tolerance range, the system creates corresponding discrepancies (cost or quantity). Otherwise, matched invoices are posted to the financial staging table.
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Note: Discrepancies are logged only if the configuration calls for a discrepancy to be created. Otherwise no discrepancy is produced. |
For header-level-only invoices, TAX validation is performed as a final validation step, after cost and quantity matching has been performed.
For more functional information about summary and detail-level auto-matching, see "Auto-Match Invoices" and "Auto-Match Credit Notes."
On-line Matching
Invoices
The on-line matching dialog provides users with the ability to match invoices with even greater flexibility than the auto-match process. Online matching allows various search criteria to be used to search for documents, and then user has flexibility to select documents to be included in the match if they conform to costing rules.
On-line matching either matches the invoice, which would then be sent to the financial staging tables by the posting process, or supports creation and resolution of a cost and/or quantity discrepancy.
Credit Notes and CNRs
Typically, invoices for which CNRs are generated are sent to accounts payable even if matching credit notes have not yet been received. The retailer, then, is issued an invoice that actually is higher than it should be and will have to wait until credit notes are processed before receiving credit for the overcharge. The supplier, in turn, may be overpaid. To avoid this inefficiency, ReIM allows invoices with unmatched CNRs to be held (not paid) until all corresponding credit notes are received-at which time the invoice automatically is sent to accounts payable.
When a credit note request is matched to a credit note through online matching, the ID number of the invoice to which they are associated is assigned to the credit note. In this way, the invoice and all related documents may be released to accounts payable at the same time.
When matching CNRs to credit notes on a held invoice, the original invoice should be checked for other open discrepancies. If none exist, the Hold indicator on the invoice is turned off so that the invoice and all related documents can be released to the financial system.
Discrepancy Resolution
Users assign pre-defined reason codes against cost and quantity discrepancies to support resolutions. The reason codes direct the system to take a specific action.
Cost and quantity discrepancies are sent to the Discrepancy Review list by the automatch program if discrepancies exist after a routing date is past (routing date is typically a date after the invoice date but before the due date. It is calculated based on system or supplier options). Users can then access the discrepancy review list to resolve outstanding discrepancies.
Once all discrepancies are resolved for the document, it is posted to the financial staging table along with any corresponding adjustment documents, for posting to the retailer's accounts payable solution.
Documents supporting discrepancy resolution (such as debit memos, credit note requests, and credit memos) are available for EDI download to the supplier. (Or the retailer may develop reporting from these values stored in the ReIM tables). These document records (except credit note requests) also are posted to the financial staging tables.
If there is a discrepancy between a credit note and a credit note request, it can be resolved by generating a new credit note request, a credit memo, or by issuing a write off, depending on the type of discrepancy and the resolution action selected. In addition, CNRs created inadvertently can be voided and fully reversed to expedite resolution. (It is assumed that if all CNRs related to a held invoice are voided, that invoice is released for payment.)
