AP Automation - PO Matching Variance and Compliance
I have a customer question regarding the AP Automation PO matching functionality, specifically around invoice variances and compliance controls, and would appreciate your guidance.
PO Matching & Variance Handling
- If there is a variance between the PO amount and the invoice amount, how does the system behave when matching via the AP Automation process?
- Does it still match automatically?
- Does it flag an error or exception?
- Can a variance threshold be configured (e.g. amount or percentage) where matching proceeds regardless?
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If the “Variance for Receipting” access privilege is enabled:
- Does this allow users to override PO variances during voucher processing?
- Is this override fully auditable?
add: how does AP Automation handle where the variance is over the threshold.
Note: it doesn't look like the customer is using the access privilege at the moment which means that anything over the PO will require the user to create an additional PO. Question will be how the AP automation can pick up on 2 POs relating to the one invoiced amount.
Compliance Scenario (Customer Requirement)
The customer’s current process requires that any invoice with a variance to the PO must have the PO amended or an additional PO raised before the voucher can be processed (strict compliance).
From initial observation, it appears AP Automation may not support this scenario end-to-end, but if these controls or configurations are available, the customer would be keen to understand how this could be managed within the automation flow.
Could you please confirm whether:
- This compliance requirement can be supported natively, or
- The variance handling would require manual intervention outside automation?
- Does this allow users to override PO variances during voucher processing?
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Official comment
For PO Matching and AP Automation:
1.) PO must be referenced currently on the invoice from the supplier
2.) If the PO number is NOT referenced - Supplier invoice/voucher is created unmatched to the PO - consistent with if a backoffice user had done the same and created an unmatched voucher
3.) If the PO is referenced AND it is a valid purchase order number - then all PO lines from that purchase order will be transferred to the voucher and marked to close if the invoice amount equals or exceeds the purchase order amount - otherwise the items will NOT be marked to close.
What I expect will occur if there is an additional invoice amount - is that the PO details on the voucher will not match the voucher distribution and that this difference will need to be allocated or addressed in some manner prior to posting the voucher. Beyond that - I would expect we would strongly consider improvements to the PO matching and voucher creation process to include a security check at an appropriate point in the workflow. -
Afreen Ashfak which customer is this?
Tagging Ryan Ungerboeck @... for input
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Seth Halvaksz the customer is Ta Pae Christchurch Convention Center in New Zealand.
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I'm not seeing any usage for them. Are they onboarding?
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They are not onboarded. Demos are complete and this is the final validation before contract sign-off.
The customer needs confirmation that AP Automation supports their compliance requirements around PO variance handling (matching behaviour, variance thresholds, and override permissions). This is the reason for the detailed workflow questions.
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Ok thanks. Ryan will know.
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Hi Team, Ryan Ungerboeck can you please advise re above?
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Seth Halvaksz Ryan Ungerboeck @... - HI team can you please advise. Thanks
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Ryan Ungerboeck can you answer this question from Afreen
"The customer needs confirmation that AP Automation supports their compliance requirements around PO variance handling (matching behaviour, variance thresholds, and override permissions)."
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Hi Team, following up urgently on the AP automation question above. The customer is waiting on our response. Could you please advise ASAP? Thanks.
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