Matching Invoice Lines

Matching is the process of associating an invoice with a purchase order, receipt, or consumption advice. Matching ensures that you pay only for the goods and services that you ordered, received, or consumed.

Matching to Purchase Orders

You can match a single invoice to multiple purchase orders and you can match multiple invoices to a single purchase order.

The matching process:

• Creates invoice lines using information from purchase order schedules

• Creates invoice distributions using information from purchase order distributions

• Updates the billed quantities and amounts on purchase order schedules and distributions

If you match to a purchase order schedule that has multiple distributions, the matched amount is automatically prorated across all the distributions on the schedule. If you match directly to purchase order distributions, amounts are allocated against only those matched distributions.

Tip: During invoice entry, you can specify a purchase order number in the Identifying PO field. Information from that purchase order, such as legal entity and supplier, is then automatically populated on the invoice.

Note: On the Match Invoice Lines page, the purchase orders available for matching have the same legal entity as the invoice.

Matching to Receipts

By matching to receipts, you can avoid invoice holds when paying for partial shipments. Also, conversion rate variances are likely to be smaller. The time between the receipt and invoice is less than the time between the purchase order and invoice.

• Multiperiod accounting isn't supported on invoice lines matched to PO with accrue at receipt enabled. In such cases, the expenses are recognized by the receipt transaction and not the Payables invoice.

Tip: If you use periodic costing in Oracle Fusion Cost Management, it's critical that you match to receipts to ensure accurate cost accounting.

Note: On the Match Invoice Lines page, the receipts available for matching belong to purchase orders with the same legal entity as the invoice.

Matching to Receipt Charges

When you match an invoice with freight, tax, or miscellaneous charges to a receipt, the total cost of the goods includes those charges. Matching to receipt charges doesn't affect the billed quantities and amounts on the purchase order schedule.

For example, you purchase a computer from Company A for 1,000 USD. Company B ships you the computer for 50 USD. You can match the freight invoice from Company B to the computer receipt from Company A. The matching process associates the freight charge with the cost of the computer.

Matching to Consumption Advice Documents

You can match to consumption advice documents to pay for consigned items that have been used or whose ownership has transferred from supplier to buyer.

Matching to Purchase Order Lines with Supplier Credits

Match invoices to purchase order lines with supplier credits. During a new equipment purchase, the buyer trades in older equipment. In the purchase order, create a negative line for the value of the older equipment. This negative line acts as the supplier credit and is matched to the invoice.

Matching invoice lines separately to item lines and supplier credit on the purchase order ensures that an invoice reflects the cost of the item accurately.

You can create invoices matched to negative purchase order lines either from the Create Invoice page or by using the Import Payables Invoices process. Suppliers can also create such invoices from the Supplier Portal.

Note: Taxes are applicable on negative purchase order lines.