Matching Approval:

Matching is a process performed for goods and services ordered through a purchase order that
takes place during the online invoice approval process.

The invoices must meet matching tolerances or a hold is placed on the invoice and payment
cannot be made until the hold is resolved or manually released.

Types of Matching Approval Processes:

1. Two-way Matching Process:
Quantity and amount on the invoice are matched to the quantity and amount on the
corresponding purchase order.
Quantity Billed <= Quantity Ordered
Invoice Price <= PO Price
2. Three-way Matching Process:
Quantity and amount on the invoice are matched to the quantity and amount on the
corresponding purchase order and to the receipt.
Quantity Billed <= Quantity Received
3. Four-way Matching Process:
Quantity and amount on the invoice are matched to the quantity and amount on the
corresponding purchase order, to the receipt, and the accepted after inspection.
Quantity Billed <= Quantity Accepted

Examples:
If I Ordered 10 computers, a receipt was made for 9 items and accepted all of them and an invoice was
created for 10 computers. Depending on the matching approval what will happen:
2-way matching

the payment for the invoice can be made

3-way matching

the payment for the invoice cannot be made and a hold is placed

4-way matching

the payment for the invoice cannot be made and a hold is placed

If I Ordered 10 computers, a receipt was made for 9 items and accepted all of them and an invoice was
created for 9 computers. Depending on the matching approval what will happen:
2-way matching

the payment for the invoice cannot be made and a hold is placed

3-way matching

the payment for the invoice can be made

4-way matching

the payment for the invoice can be made

If I Ordered 10 computers, a receipt was made for 9 items and accepted only 7 of them and an invoice
was created for 9 computers. Depending on the matching approval what will happen:
2-way matching

the payment for the invoice cannot be made and a hold is placed

3-way matching

the payment for the invoice can be made

4-way matching

the payment for the invoice cannot be made and a hold is placed

If I Ordered 10 computers, a receipt was made for 9 items and accepted only 7 of them and an invoice
was created for 7 computers. Depending on the matching approval what will happen:
2-way matching

the payment for the invoice cannot be made and a hold is placed

3-way matching

the payment for the invoice cannot be made and a hold is placed

4-way matching

the payment for the invoice can be made

RFQ Only Site check box in Supplier-Purchasing tab in Financial Options:

If this flag is checked then you cannot raise POs against the supplier site. However, you can use it for
RFQ - Quotations.