Grants: Birds of a Feather

Matching:The relationship between Purchasing and APThursday, September 19th

Teresa Page, ITS

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AgendaPurpose of MatchingRelationship between Purchasing and APPurchasing Dept ResponsibilitiesAccounts Payable Dept ResponsibilitiesTo Override or Not to OverrideEffects of Overriding Match Exceptions

2Office of Fiscal Affairs Track2Purpose of MatchingMatching is the process used to compare Vouchers with Purchase Orders and, when required, Receipts to ensure that your institution pays for only the goods and services that have been ordered and received

Two-Way Match: Voucher and Purchase Order

Three-Way Match: Voucher, Purchase Order and Receipt

3Office of Fiscal Affairs Track3Relationship between Purchasing and APThe tie that bindsMATCHING!

Decisions made by each department can affect the other

Communication is important to resolve Matching Exceptions the right way

4Office of Fiscal Affairs TrackPurchasing ResponsibilitiesEnsure PO is set up correctlyReceiving OptionsReceiving is RequiredReceiving is OptionalDo Not Receive

Matching OptionsFull MatchNo MatchAll lines on a PO should have the same Matching requirement

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Office of Fiscal Affairs TrackLooking at the PO Line Schedule lets assume there are 4 lines on the PO. Lines 1 & 2 are set to No Match, while Lines 3 & 4 are set to Full Match

Lets assume that lines 3 & 4 are pulled into a voucher and Matched. What do you think the Match Status on the PO Header is set to? Why?

You can define value and percent tolerances to override exceptions generated by the match rules. The Matching process uses match tolerances when comparing the prices and amounts. If a match exception exists, and the voucher is within the tolerances established in these components, the Matching process automatically overrides the exception.67

Office of Fiscal Affairs TrackHere we are looking at the Item Category Definition (NIGP) The Matching and Receiving defaults are defined here and populate the PO when you enter the Category Code (NIGP)7Accounts Payable ResponsibilitiesUnderstand how creating a PO Voucher can affect Matching results

Understand what the Match Exception means before deciding to override it, and what the effect will be if choice is to override

If necessary, request Purchasing Dept to correct PO Matching and/or Receiving settings

8Office of Fiscal Affairs TrackIf necessary, request Purchasing Dept to correct PO Matching and/or Receiving settings ALSO could correct QTY PO vs Amount Only PO.

8Accounts Payable ResponsibilitiesCreating Voucher using Worksheet option

Vendor Location and Address is pulled from the Vendor, NOT the PO

Adjust the Quantity or Amount BEFORE copying PO/Receipt into voucher

9Office of Fiscal Affairs TrackVendor Location and Address is pulled from the Vendor, NOT the PO: This MAY cause a match exception, if the PO is different.

Also, if you define the vendor on the Add Voucher page

Adjust the Quantity or Amount BEFORE copying PO into voucher: Typically we see matching issues when voucher is created from Receipt and the Qty is adjusted after pulling it into voucher.

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Office of Fiscal Affairs Track10Defining Vendor ID here will cause the Default Vendor Location and Address, as defined in the Vendor file, to populate on the voucher.11

Office of Fiscal Affairs TrackTo Override or Not to Override?2 ways to resolve these Match Exceptions without choosing to override. What are they?12

PO Qty = 5Voucher Qty = 5Receiving Required, but No Receipt createdOffice of Fiscal Affairs TrackRequest Receipt be created

If Receipt is not needed, request Purchasing Dept to change Receiving Requirement on the PO.12To Override or Not to Override?If you override this exception, the PO Status will get updated to Partially Matched, but will NOT get updated to Matched.

The PO will NOT be eligible to be closed. The Purchasing Dept will have to manually force it to close.

The PO CAN be vouchered again, since the PO Match Status was not updated to Matched. However, Doc Tol will get an exception, which is a good double check, but those exceptions are often overridden as well.

13Office of Fiscal Affairs TrackIf you override this exception, the PO Status does NOT get updated to Matched, which means a few things:The PO will NOT be eligible to be closed.The PO CAN be vouchered again, technically, since the qty was not matched. However, Doc Tol will get an exception, which is a good double check, but those exceptions are often overridden as well.

13To Override or Not to OverrideWhat is the best way to resolve this Match Exception? Why?14

PO Qty = 5, PO Unit Price = $20.00Voucher Qty = 5, Voucher Unit Price = $17.00 (Invoice came in with a lower unit price)Receiving NOT RequiredOffice of Fiscal Affairs TrackThis is a Quantity based PO, NOT amount Only14To Override or Not to OverrideThis Match Exception will most likely require some research in order to determine the best way to resolve.Confirm you copied in the correct POConfirm the final invoice amount is correct

If you determine that the final invoice price was less than the PO price, it is ok to override this Match exception.

The PO Match Status is updated to MATCHED, since the full Qty was vouchered.

The PO will be eligible to be closed, without further intervention.15Office of Fiscal Affairs TrackTo Override or Not to OverrideWhat is the best way to resolve this Match Exception? Why?16

PO Location: Main, Address Seq 1Voucher Location: Remit, Address Seq 2Office of Fiscal Affairs TrackThis rule description is a little confusing, since the Vendor is Actually the same. It should say Vendor Loc/Address not equal to PO Vendor Loc/Address16To Override or Not to OverrideSince you may have a valid reason for using a different Loc/Address on the Voucher, it is ok to override this Match exception.

The PO Match Status is updated to MATCHED.

The PO will be eligible to be closed, without further intervention.

17Office of Fiscal Affairs TrackTo Override or Not to OverridePO Amount: $445.43Receipt Amount: $445.433 VouchersVoucher 1: $285.84Voucher 2: $155.42Voucher 3: $4.1718

What is the best way to resolve these Match Exceptions?Why?Office of Fiscal Affairs TrackTo Override or Not to OverrideYou should not override these Match Exceptions. The suggested steps to resolve them would be to manually associate the receipt, then run the Matching process again.

In this case, there are 3 Vouchers and 1 Receipt. Due to the document association rules, the system will not automatically match them to each other.

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Office of Fiscal Affairs TrackTo Override or Not to OverridePO Line Amount: $31.40Voucher Line Amount: $6.28Previously Vouchered Line Amount: $31.4020

What is the best way to resolve this Match Exception?Why?Office of Fiscal Affairs TrackTo Override or Not to OverrideThis Match Exception will most likely require some research in order to determine the best way to resolve.

The Match Exception is telling us that the voucher amount EXCEEDS the PO tolerance amount($500 or 10%).

Determine if there is a valid reason for Exceeding the PO Amount.

Choose which action to take Override, Correct the voucher amount, or Close/Delete if Voucher is a duplicate.

21Office of Fiscal Affairs TrackThe Match Exception is telling us that the voucher amount EXCEEDS the PO tolerance amount - $500 or 10%, as defined on the PO Line Schedule, Matching tab.

Will most likely receive a Doc Tol Exception, too

21Purchase Order InquiryPurchasing>Purchase Orders>Review PO Information>Purchase OrdersReview Matching StatusReview Receiving RequirementsReview Matching Requirements22

Office of Fiscal Affairs TrackA lot of times when working tickets I have been asked where can I see that.

Most of you should have authority to Inquire on PO data, so lets look at a couple of those pages.

Navigation

PO Header current Match Status

PO Line Details to see Receiving Requirements

PO Line Schedule to see Matching Requirements22PO Header Match Status23

Office of Fiscal Affairs TrackPO Line Details Receiving Requirements24

Office of Fiscal Affairs TrackPO Schedule Details Match Line Status25

Office of Fiscal Affairs TrackSchedule Details icon to see the Matching requirements25TriviaPO created as Do Not Receive and Do Not MatchWhen is it eligible to be closed? What if a voucher has not yet been created & processed?

26Office of Fiscal Affairs TrackHelpful QueriesBOR_VCHR_PO_NOTRECV: Displays PO Lines that have been vouchered, but not yet received.

BOR_PO_NOT_RECEIVED: Displays PO Lines not yet received

BOR_PO_OPEN_ENCS_KK: Displays POs with Open Encumbrances in KK

27Office of Fiscal Affairs TrackQuestions?28Office of Fiscal Affairs Track