Purchase Order Matching AX standard and Exflow

Details about Lines When are Lines required? Interpretation Posting (Required) Matching (Optional) Interpretation (optional) Interpretation YES: Stock kept items (direct material) NO: Category buy (indirect material) Instead ues ExFlows copy from PO or receipt. Mapping between order lines and invoice lines (Lot-ID connection) are key in ExFlow for matching and posting

Matching types Types of matching: Line level matching 3-way (qty+price including tolerances) 2-way (price including tolerances) Header level matching Calculated po totals against invoice totals Includes VAT Price totals matching Checking all invoice amounts against the po line amounts

Header level matching examples This example demonstrates a case where the lines don’t match but the matching engine will say it matched if only header level matching is used Po totals: 5000+VAT PO line1 : Item A, qty 2, price 1000 PO Line2: Item B, qty 2, price 1500 Invoice totals: 5000+VAT Invoice line1: Item A, qty 2, price 1500 Invoice line2: Item B, qty 2, price 1000

Line Level matching Matching policy? 3-way: requires product receipt 2-way: Auto product receipt on posting Not required (1-way): Invoice lines will be auto matched

Allowing high tolerance per invoice but low tolerance in total If you want to allow a high tolerance per invoice but only 10% in total for the purchase you can setup the tolerances in the following way PO line: Item1, qty 1000, unit price 0,5 , line amount 500 tolerances on a line level is 1000% (allowing high variation per invoice) Price totals tolerance is 10% (Making sure no more than 550 in total can be matched)

Different types of costs Item cost Additional costs Freight Customs Metal alloy surcharge Landed cost Auto misc charges (PO) Charges (Invoice)

Landed cost setup (typical) Auto misc charges Account Item Charges Vendor Standard cost for freight/customs etc. on the item Actual cost on account Compare actual and calculated

Charges and ExFlow Exflow charge issues Allocated or line level charge on the PO is difficult to match, requires manual intervention in posting dialog Header level matching only on charges with ExFlow for automation Allocating charges, break automation and needs to be posted manually Automation support is Coming q2 2017

Invoice Posting Posting of an invoice Cost of invoice will be used PPV (std cost) Update FIFO cost Interesting effect on Dummy items FiFo variation posting (inventory close) PO price should be close to actual price to minimize this

PO pre-payments 2012R2Cu6 we got pre-payments Do it the old way Finance centric Difficult to automate Do it the old way One line per installment One credit line

Pre-payments continued Pre-payments Example PO: category pre-payment ,qty 1, 30000 PO: Item A, 100 qty, 1000 each) PO: category pre-payment ,qty -1, 60000

Free-on-board payment terms Offshore WH Goods receipt according to bill of lading Matching po invoice against this Transfer order to real WH Goods-in-transit posting Raising credit order on mismatch Remember No QA order from transfer order

Shrinkage Take the cost 1000 and post to 997 Manually adjust qty and price Manufacturing order Order qty as input Actual qty as output

Tips to simplify matching Uom Price Unit Try to have same on PO and invoice No discounts are prefered, use net pricing