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This Section describes what Invoice Matching and Invoice Clearance are, how they fit in with Purchasing Management and the relationships between Invoice Matching, Invoice Clearance and other e5 modules.
Invoice Matching and Invoice Clearance impact on Accounts Payable and General Ledger as well as Purchasing Management. If Accrual and Commitment Accounting are used then they will also be affected.
The remainder of this section describes each of the various tasks within the facility.
Invoice Matching is the process of matching the information on a AP Transaction (Invoice or Credit Note) to Orders and GRNs so that an Invoice can be marked as Complete ready for (automatic) payment. To ensure that the correct payment is made the system checks each transaction to certify that a price and/or quantity mismatch has not occurred (e.g. the Transaction Quantity is not equal to the Received Quantity or the Transaction Price is not equal to the Order Price), or additional lines occur on the Transaction.
Under these circumstances the system cannot make judgements and the Transaction is marked as Held until it can be viewed and the problems resolved by Invoice Clearance or further matching, e.g. when a part delivery is completed.
The mismatches are dealt with as two groups. Mismatches on Price or Additional Charges are dealt with On Line, but Mismatches on Quantity and Value are dealt with by a Batch Process. If an Invoice is Held by a combination of factors, resolution of one factor alone, will not release it.
When a mismatch is detected the Transaction is Held until the mismatch is resolved. This is achieved by Invoice Clearance, where for a Transaction each detail line that is subject to a mismatch outside predefined tolerances will be displayed and an Agreed Invoice Price must be entered for that line.
The Transaction will only be released when each detail line that is listed has an Agreed Price entered.
It is important to note that General Ledger postings will be made for the Transaction Price entered originally on the Invoice Detail Lines. If an agreed price has been entered that is less than the original Invoice Price then a Debit Note will be generated by the system for the difference. The postings for the Debit Note will debit the Creditors Control Account and credit the Expense Account(s) to which the detail line is being posted.
Invoice Clearance is performed to allow the adjustment of information on various Transaction documents to resolve problems that are preventing your Company paying for goods and services that have been Ordered by, Delivered to and Accepted on behalf of, the Company.
These problems are detected by the system and indicated by a Hold status being allocated to the Transaction, preventing them from being Paid. As there are four types of mismatch, it is possible, though unlikely, that four steps may need to be taken to clear a Transaction.
The diagram illustrates the impact of Invoice Matching within the Business Cycle.
Diagram pm280
The minimum requirements for you to display a list of Unmatched Transactions are:
If a report is required for the Operation you must submit the Process before the Clearance operation begins. The report processes are as below:
The diagram illustrates the sequence of screens accessed during the execution of Invoice Clearance.
Diagram pm290
The report processes are as below:
GR1 - Price and Additional Charges Mismatch Report
GR2 - Quantity Mismatch Report
GR3 - Value Mismatch Report
See Accounts Payable Reports for more information.
See also
Purchasing Management Home Page
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© Advanced, Jan 2021 |
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