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PO Matching: 2 ways, 3 ways or 4 ways

Posted on June 5th, 2007 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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In the Procure to pay cycle, we all know it start from requisition to payment, thus it is equally important to understand the relation between PO and Invoice, which of course is subject to Matching based on tolerances level set.

How many ways for matching
They are mainly 3 ways:

  • 2-ways
  • 3-ways
  • 4-ways

How to explain

hand2-way matching

This verifies verifies that Purchase order and invoice information match within your tolerances as follows:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered

hand3-way matching

This verifies that the receipt and invoice information match with the quantity tolerances defined:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received

hand4-way matching

This verifies that acceptance documents and invoice information match within the quantity tolerances defined:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received
Quantity billed <= Quantity accepted

How to relate between PO and invoice tables:

Here are the entity relationship diagram, explaining 2 way and 3 way matching condition.

2way

3way

In summary

compare

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Posted in Oracle Payable, Oracle Purchasing | 2 Comments »Email This Post Email This Post | Print This Post Print This Post

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2 Responses
  1. Siddharth Says:

    I am using 2 way matching on a Service PO & attaching a tax rate on it. I cant change the tax amount in Payables after I hit calculate tax key. Is this some problem relating to this Matching Process

  2. Josephinas Shen Says:

    I understand that 3/4 ways receipts, Oracle will automatically book an accrual transactions if we haven’t received the invoices.

    How about the 2 ways match? How does system book the accrual transactions if it is a 2 ways match and we have recived the service but not the invoice?

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