Matching Concept plays a vital role in Procure to Pay(P2P) Cycle. Matching Concept will acts as check (Quantity & Price) between Purchase Order, Receipt, Inspection Report and Invoices. Matching Method will be defined at Purchasing Options, which will default to supplier, Supplier site and Purchase order shipment lines. Which you change as per your organisation requirement basis before approval of Purchase Order. There are three types of Matching Methods.
1) 2 Way Matching .
2) 3 Way Matching.
3) 4 Way Matching.
2 Way Matching: It verifies that purchase order and invoice information match within your tolerances as follows:Quantity billed is less than or equal to Quantity ordered
Invoice price is less than or equal to Purchase order price.
3 Way Matching: It adds a third criterion to verify that receipt and invoice information match with the quantity tolerances you define:
Quantity billed is less than or equal to Quantity received.
Quantity billed is less than or equal to Quantity ordered
Invoice price is less than or equal to Purchase order price.
4 Way Matching: It adds a fourth criterion to verify that acceptance documents and invoice information match within the quantity tolerances you define:
Quantity billed is less than or equal to Quantity received.
Quantity billed is less than or equal to Quantity ordered
Invoice price is less than or equal to Purchase order price.
Quantity billed is less than or equal to Quantity accepted
Note: If the invoice and purchase order do not match within the tolerances you define for quantity and price, System Pop-up with a Note Message and Approval process places a matching hold on the invoice. You must release the hold and validate the invoice.
