1. Purchase Order Matching
AX standard and Exflow

2. 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

3. 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

4. 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

5. 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

6. 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)

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

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