3 Way Match Vendor Bill Approval Workflow

The 3 Way Match Vendor Bill Approval Workflow checks the vendor bill for discrepancies before it is processed for payment. It validates the details of a vendor bill against the details of its corresponding purchase order and item receipt. Bills with identified discrepancies are automatically routed to the assigned supervisor for review and approval.

The 3 Way Match Vendor Bill Approval Workflow provides the following benefits:

• Identifies issues by highlighting specific variances between the transactions, allowing the approvers or buyers to quickly address the issues

• By finding the variances, inventory levels are accurately maintained

• Eliminates cost variances to ensure that there is no overpayment for items that have not been received

The 3 Way Match Vendor Bill Approval workflow performs more validations than the regular Vendor Bill Approval workflow. The following validations are made between the vendor bill and purchase order or item receipt.

Vendor Bill and Purchase Order Validations

• Difference in Terms and Location

• Discrepancy in Quantity and Amount

• Quantity and Amount Tolerance levels

• Quantity Difference levels

Vendor Bill and Item Receipt Validations

• Corresponding Item Receipt for a Vendor Bill

• Discrepancy in Quantity

• Quantity Tolerance and Difference levels

The 3 Way Match Vendor Bill Approval workflow serves as a template that can be modified based on your specific business needs. Consider the following case for two criteria used to validate the vendor bill against the purchase order. The company has set a quantity and amount tolerance limit on the vendor bill. This limit validates the quantity and amount discrepancy between the vendor bill and purchase order.

Field	Purchase Order (PO)	Vendor Bill (VB)
Amount	1000	970
Quantity	100	97
VB-PO Amount Tolerance		0.10
VB-PO Quantity Difference		2

If both criteria or if only the VB-PO Quantity Difference is applied, note the following. The bill is routed to the supervisor for review and approval because the quantity discrepancy exceeds its tolerance limit. If only the VB-PO Amount Tolerance is applied, the bill is automatically approved because the amount discrepancy does not exceed the amount tolerance limit.

Important:

When using the tolerance fields and criteria, you have to disable other quantity and amount criteria that may affect the validation. For information about setting specific criteria, see Disabling Exception Criteria.

For guidelines on using the tolerance and difference limits, see Best Practices When Using the Tolerance and Difference Limits.

For the complete list of exceptions, see 3 Way Match Vendor Bill Approval Exception Criteria.

For information about customizing the workflow, see Customizing the 3 Way Match Vendor Bill Approval.

Availability

The 3 Way Match Vendor Bill Approval Workflow is included in the NetSuite Approvals Workflow SuiteApp that must be installed in your account. For more information, see Installing the NetSuite Approvals Workflow SuiteApp.

Accounts with the Vendor Bill Approval SuiteApp are automatically upgraded to the NetSuite Approvals Workflow SuiteApp. The NetSuite Approvals Workflow SuiteApp contains the three workflows: Vendor Bill Approval, 3 Way Match Vendor Bill Approval, and Invoice Approval.

Limitations

Be aware of the following limitation of 3 Way Match Vendor Bill Approval.

Item receipts that have been partially received are not supported.

Related Topics

• Setting Up 3 Way Match Vendor Bill Approval
• 3 Way Match Vendor Bill Approval States
• Entering a Vendor Bill
• Email or Upload Vendor Bill Files Into NetSuite Using Bill Capture
• Differences Between Bills and Checks
• Receiving Inventory in Advance of a Bill
• Canceling a Vendor Bill
• Vendor Bill Printing
• Vendor Bill Variances
• Vendor Bill Approvals
• Vendor Bill Approval Workflow
• Vendor Bill Approvals in the Employee Center

General Notices