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How to set PO Match Options in Oracle Apps?

Hello viewers Here i am explaining about the match setups in oracle apps purchasing.

[PO] Matching Setting in Purchase Order Shipment Line

We can Set Invoice matching in five different areas of Oracle Purchasing:
In the list below, a setting at any level will override the settings above it.
1. Oracle Purchasing Options
a. Navigate to: Setup > Organizations > Purchasing Options
b. Select Default Alternative Region
2. Supplier Information
a. Navigate to: Supply Base > Suppliers
b. Query on specific supplier
c. Click on Open
d. Select Receiving Alternative Region
3. Line Types
a. Navigate to: Setup > Purchasing > Line Types
b. In the Receipt Required field: Yes = 3-way, No = 2-way
4. Items
a. Navigate to: Items > Master Items
b. Query on specific item
c. Select Purchasing Alternative Region
d. In the Invoice Matching section: Yes = 3-way, No = 2-way
5. Purchase Order Shipments
a. Navigate to: Purchase Orders > Purchase Orders
b. Enter (header and) line information
c. Click on Shipments button
d. Select More Alternative Region

Invoice Match to PO and Invoice Match to Receipt

Oracle Payables shares purchase order information from your purchasing system to enable
online matching with invoices. Invoiced or billed items are matched to the original purchase
orders to ensure that you pay only for the goods or services you ordered and/or received. If
you are billed for an item over the amount and quantity tolerances you define in the Invoice
Tolerance window, during Approval, Oracle Payables applies a hold to the invoice, which
prevents payment.
Oracle Payables supports three levels of matching which verify that purchase order and
invoice information match within defined tolerances.
Match Approval Level: 2-Way , 3-Way, 4-Way.
In 2-way: what ever you have ordered for the PO you will make the payment for the suppliers
in 2-way i.e we will compare two documents PO and Invoice.
2-way matching verifies that Purchase order and invoice information match within your
Quantity billed <= Quantity Ordered

Invoice price <= Purchase order price

Eg:Suppose we Had given PO for 100 items ,for that we will receive invoice for 100 items. so
that we will make payment for that 100 items.
In 3-Way you will compare 3 documents i.e PO+reciept+Invoice.
3-way matching verifies that the receipt and invoice information match with the quantity
tolerances defined:
Quantity billed <= Quantity received.
Eg:Suppose we have ordered 100 items in PO. But we had received only 75 items ,But we
had received invoice for 100 items. so, we will make payment for only 75 items.
In 4-Way you will compare 4 documents i.e PO+Receipt+Invoice+Inspection.
4-way matching verifies that acceptance documents and invoice information match within the
quantity tolerances defined:
Quantity billed <= Quantity accepted.
Eg:Suppose we have 100 items in PO. Suppers send us 75 items We will do inspection on
those items what ever we have received, If 15items got damaged. finally, we are going to
make payment to the 60 items only.
When you match to a purchase order, Payables automatically checks that the total of
Payables only checks QUANTITY_RECEIVED (3-way matching) if the
RECEIPT_REQUIRED_FLAG is set to Y and only checks QUANTITY_ACCEPTED (4way matching) if the INSPECTION_REQUIRED_FLAG is set to Y.
Invoice Match Option:
The Invoice Match Option determines whether or not you intend to match invoices for this
supplier against purchase orders or receipts.
Invoice Match option to PO Match:
-------------------------------------------Payables must match the invoice to the purchase order.
If the Invoice is matched to a PO rather than to the Receipt when the AP team do a match
they have the full PO available to match rather than just the specific lines on the PO that were
There is a possibility someone in payables matching to the wrong distribution if they use
Match to PO.
The accrual is valued at the PO exchange rate date.
Invoice Match option to PO Match:
---------------------------------------------Payables must match the invoice to the receipt.
Receipt Match Option is recommended if you want accounting to use exchange rate
information based on the receipt date or if you want to update exchange rate information on
the receipt.
If you use the match to receipt option AP team can't match until the goods are received. If
the receiving doesn't happen there is no way to associate the invoice with the PO.
Invoice processing will be on hold till a receipt is entered into the system.
Receipt Match option determines the cost with more accuracy i.e. Match to Material item
receipt and link other invoice charges to receipt and You can now also associate freight, tax,
and miscellaneous charges from invoices to the related receipt.

Run the Matching Detail Report from Other -> Request -> Run. This report will show you
detail of how an invoice, purchase order, or receipt was matched. This report is especially
helpful when an invoice is on hold and you are trying determine why the hold was placed.
The Invoice Match Option defaults from the Supplier Sites window. You can change the
Invoice Match Option on the shipment until you receive against the shipment.
Financial Options - Invoice Match Option:
For purchase order shipments, indicate whether you want to match invoices to purchase
orders or to purchase order receipts. If the supplier was created automatically during Expense
Report Import, the default value is Purchase Order, and you can change it to Receipts as
The Business Needs To Take decision to set the Invoice match option to Receipt or
The main advantage is the Exchange Rate factor i.e. Receipt/Current Date instead of
Purchaser Order date.
If you are using Multi Currency Functionality for Purchase Order and if like to have the rate
based on
Receipt date you need to go with Receipt Match at the invoice match option.
Receipt Match gives much closer control of the matching process,Particularly where you
have multiple receipts of large purchase order.
If a Business is using Invoice Match option Purhcase Order and like to change from Purchase
Order to Receipt Match, then what would be the impact?
All Supplier sites need to be updated with Invoice Match option to Receipt.
Purchase orders which are already approved with Invoice Match Option of Purchase order
should continue with the same existing process.
All existing Open PO, which need a change from Purchase Order to Receipt, should be
corrected by changing the invoice match option in the purchase order shipment to Receipt.
Payables team should match invoices to Receipt for all Purchase Orders created after the
cut-off date.
Training to AP/PO users.
In order for the receipt to use the current exchange rate and not the PO exchange rate, the
Invoice Match Option at the system level and on the suppliers should be Receipt, not
Purchase Order.