How to Prevent Posting Invoice if the Invoice Amount is Different from the Amount in the Purchase Order/Receipt

In cases where supplier invoices vary from the purchase order amount, it may be necessary to verify before allowing the invoices to be posted.

Sage X3 offers a control feature called matching tolerance to address this need.

Matching tolerances in Sage X3 provide controls for purchase receipts and invoices. By creating these tolerances, thresholds are established regarding the permissible levels of over- or under-receiving and over- or under-invoicing within the purchasing module.

If these thresholds are surpassed, the system will trigger either a warning or block the posting of the invoice.

SETTING UP TOLERANCES

Go to Setup > Purchasing > Matching Tolerances.

Define the relevant parameters.

ASSIGNING TOLERANCES

The tolerance code can be assigned to Suppliers, Products, and combinations of Suppliers and Products.

The matching tolerance can be assigned to the product category, as illustrated below. Once defined, all new products created in this category will inherit the matching tolerance set for the category.

For existing products, the matching tolerance needs to be individually added to each product or to the specific products where it is required.

The same set up above can be used in the supplier masters.

Common Data > BPs > Suppliers > Management Tab

This code is then automatically defaulted into the purchase order line as shown below (highlighted I red).

Creating the Invoice

At the purchase invoice level, if the amount in terms of net price is reduced or exceeded, the matching tolerance will allow the users to create the invoice. However, it will be generated with a blocked status, preventing it from being posted.

To post the invoice, the tolerance must be unblocked from the right panel, thereby releasing the block and allowing the invoice to be posted.

To unblock go the three dotted line, then go to the unblock matching error

The system offers various capabilities such as user notifications, workflows, and reports to further enhance the functionality of these tolerances.

For instance, a workflow can be configured so that only specific users are authorized to unblock blocked invoices. Additionally, when an invoice is blocked, an alert notification email is triggered to notify the Accounts Payable (AP) finance team for review.

In conclusion, matching tolerances in Sage X3 offer the purchasing department comprehensive controls over purchase receipts and invoices. This capability effectively prevents over- or under-receiving and invoicing errors, thereby ensuring accuracy and efficiency throughout the purchasing process.

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How to Prevent Posting Invoice if the Invoice Amount is Different from the Amount in the Purchase Order/Receipt