What you really need to know about Lawson’s MA Module

Name: What you really need to know about Lawson’s MA Module
Uploaded: 2017-07-14T01:00:54+00:00
Duration: PTM28S32
Channel: Cecil Kelley
Description: What you really need to know about Lawson’s MA Module

What you really need to know about Lawson’s MA Module
Invoice Matching TIPS What you really need to know about Lawson’s MA Module

Invoice Matching Enhancements in 8.1
PO Receipt Archival Reconciliation Filter Inv Message Listing Process Flows and Triggers AOC Reporting Duplicate Payment Report Smart Notifications Matched, Not Received JE Prepayment Processing Quantity Tolerances Chargeback Numbering More Lines on Invoice Detail Entry Screen Combining of Invoice Detail Entry Screens Tax Code for PO Invoices Enhancements to Auto Match Output February 17, 2005 Rocky Mountain Lawson User Group

Rocky Mountain Lawson User Group
Match Processing The match process compares the Invoices and Receipts in a match pool in order to eliminate the need for human intervention. If there are match exceptions they can be handled through a reconciliation process and messaging if that is required. February 17, 2005 Rocky Mountain Lawson User Group

Unmatching an Invoice If an invoice has not been posted to General Ledger, it can be unmatched in MA70 – Invoice Unmatch. February 17, 2005 Rocky Mountain Lawson User Group

When tolerances do not work
Check the match tolerance set up at the company and vendor level on MA00.9 and AP10.1. February 17, 2005 Rocky Mountain Lawson User Group

February 17, 2005 Rocky Mountain Lawson User Group

Match Pool Match pool is based on set up and use of organizational comparison rules being applied to a grouping of invoices and receipts in order to automate the processing and payment of those invoices. Invoices Receipts Match Pool February 17, 2005 Rocky Mountain Lawson User Group

Quantity Tolerances Compares invoice quantity with receipt quantity Must use Detail Level match February 17, 2005 Rocky Mountain Lawson User Group

Invoice Matching Setup
Tolerances Tolerances are setup for Match Rules and are specific to an organization Without tolerances operator intervention will be required for every transaction that does not have an exact dollar match As part of a match rule, you can select whether to generate chargebacks for matches that occur within tolerance February 17, 2005 Rocky Mountain Lawson User Group

Setting Tolerances Determine what percentage of matched invoices should be processed automatically by using the Normal Distribution Curve February 17, 2005 Rocky Mountain Lawson User Group

Chargeback Numbering in 8.1
Numbering of chargebacks is now more user friendly Used to be system assigned number In 8.1 chargeback number = original invoice number – 111 (suffix) February 17, 2005 Rocky Mountain Lawson User Group

Finding the Chargeback Number
In AP30.2 you can inquire on invoice and drill on "related invoice transactions" or in AP90.1 inquire on invoice and drill on "related invoice transactions". February 17, 2005 Rocky Mountain Lawson User Group

No chargeback transaction to the vendor will be created as chargeback is set to ‘N’. This is a set-up that has been recommended by Lawson at another client, but further review of the behaviors of this set-up may shed some light on BSA’s ability to perform online matching. The under tolerance states that if the invoice extended cost is below the receiver extended cost by more than 4%, the match will not proceed. No chargeback transaction to the vendor will be created as chargeback is set to ‘N’. This is a set-up that has been recommended by Lawson at another client, but further review of the behaviors of this set-up may shed some light on BSA’s ability to perform online matching. The under tolerance states that if the invoice extended cost is below the receiver extended cost by more than 4%, the match will not proceed. February 17, 2005 Rocky Mountain Lawson User Group

Common Reasons for Unmatched Invoices
System Issues in version 8.0.2 Vendor Issues Purchasing and Receiving Issues Invoice Issues

System Issues in 8.0.2 No flexibility in matching multiple invoices to one receipt in DM Cannot un-match and cancel a PO once posted to the GL Cannot combine Service and Special items on one PO February 17, 2005 Rocky Mountain Lawson User Group

Vendor Issues Invoices with wrong PO numbers Invoices with no PO numbers Invoices for a closed PO Invoice lines not on a PO February 17, 2005 Rocky Mountain Lawson User Group

Purchasing and Receiving Issues Item costs are not updated in the item master file in a timely manner Use of “Add Receive All” function (PO30) versus what’s on the packing slip Lines cancelled / closed Delayed receiving for off-site locations Vendor information on PO and Invoice do not match February 17, 2005 Rocky Mountain Lawson User Group

Common Reasons for Unmatched Invoice
Invoice Issues Use of Incorrect handling code Use of “Create Detail” action (MA43), but cost and quantity are not reviewed Line item details on Invoice do not agree with line items on the Purchase Order February 17, 2005 Rocky Mountain Lawson User Group

New Rule in 8.0.3 Invoice Matching (MA) version has an additional rule level option available--DM A-1. This level will allow multiple invoices to be matched to one receipt. For example, DM A-1 will allow one receipt for a quantity of 10 to be matched to multiple receipts as follows: February 17, 2005 Rocky Mountain Lawson User Group

New Rule in 8.0.3 DM A-1 must be the first rule level set up in the rule group. If the system can match at any other level prior to reaching the DM A-1 level, the functionality will not be available for future invoices against that receipt. If the invoice quantity multiplied by the unit cost is less than the receipt quantity multiplied by the unit cost, but is still within tolerance, the system will match at DM 1-1 or DM 1-A and not leave a quantity remaining to match later. February 17, 2005 Rocky Mountain Lawson User Group

Unit Option Rule Usage The Unit Option rule affects match rule groups. Purchase order line for 10 items at a price of $10.00 each. Receipt for 10 items. Invoice is entered for $100.00, with purchase order details for 5 items at a price of $20.00 each. Invoice Qty does not equal Receipt quantity – NO MATCH Out-of-tolerance error message generated and does not match on AP20/MA43/MA126 Using the Extended Rule option, the Invoice Matching (MA) system matches this invoice to the receipt. (Extended cost of both the invoice and receipt are $ ) Using the Unit Rule option, the system starts by comparing the invoice quantity to the receipt quantity. (In this case, the system is looking for a perfect match between the invoice quantity and the receipt quantity.) If we feed in data from Example A above, our invoice quantity is 5 (5 items priced at $20.00 each) and our receipt quantity is 10 (10 items priced at $10.00 each). Because the invoice quantity and the receipt quantity do not match, the system gives an out-of-tolerance error message and does not match on AP20/MA43/MA126. However, if we use an invoice quantity of 10 items compared to a receipt quantity of 10 items, the system will find a match. Now the system will check the unit cost. If the $20.00 invoice unit cost is out of tolerance to the receipt unit cost of $10.00, the system will give an out-of-tolerance message. This is valid when your rule group is set up to perform a 1-1 (one-to-one) or 1-A (one-to-all) detail match. In these cases, the Unit Rule option is looking for a perfect match (Invoice quantity = Receipt quantity). However, if the rule group is set up to perform an A-1 (all-to-one) detail match, the system makes sure the invoice quantity is less than or equal to the receipt quantity. February 17, 2005 Rocky Mountain Lawson User Group

LIM does not work in 8.0.3 Lawson discommends use of LIM in MA 8.0.3 It’s use is not well-defined and does not work consistently February 17, 2005 Rocky Mountain Lawson User Group

Match Completed? If the match is successful the invoice will proceed through the system onto payment. If match was not successful the invoice will be available in the Reconciliation Queue for review. Reconciliation allows the user to look more closely at the invoice and the receipts available for that invoice. Through the forced match in the reconciliation screens invoice messaging is also triggered. February 17, 2005 Rocky Mountain Lawson User Group

Tax Validation (MSP#2) Validation that invoice tax equals or is within tolerance of sum tax distributions. If tax is not in balance invoice will not match and it will not be released. AP Company: Tax Tolerance Amount Tax Code Tax Rounding Account Tax Tolerance Amount – specifies the acceptable tax difference between invoice header tax and sum of tax distributions Tax Code – Tax Code where difference will be posted Tax Rounding Account – Account where the difference will be posted February 17, 2005 Rocky Mountain Lawson User Group

Tax Tolerance February 17, 2005 Rocky Mountain Lawson User Group

Tax Processing Additional tax entry flexibility During invoice entry tax code can be: brought over onto invoice from PO added or changed February 17, 2005 Rocky Mountain Lawson User Group

MA43 – Tax Code February 17, 2005 Rocky Mountain Lawson User Group

Auto Match Output (MA126) Auto match optionally includes matched invoices Also retrofitted back to 8.0.3 8.0.3 CTP#24064 Factsheet Article ID: February 17, 2005 Rocky Mountain Lawson User Group

Reconciliation Process
After the initial match process, exceptions are available for review in the reconciliation queue. Initial match took into consideration your organizations match rules in order to attempt the match. Reconciliation is a forced match and only if messaging is being used are there match rules applied during the reconciliation process. There is a reconciliation queue which lists all invoices which have not been matched. From the reconciliation queue the INV button will open the invoice match screen and the DTL button will open the detail match screen. February 17, 2005 Rocky Mountain Lawson User Group

Invoice Match Invoice Match from the reconciliation screen compares the invoices and the receipts at the header level. From Reconciliation it is a forced match so if the invoice is greater than the receipt instead of match if the option is chargeback, the match will be completed and a chargeback created for the difference. If chargeback is not the option, the match will be performed and the difference written to the account on the MA company or process level for invoice tolerance. The entire receipt will be moved to a closed status. This option should not be used if inventory items are tracked in Lawson’s I/C application. February 17, 2005 Rocky Mountain Lawson User Group

Detail Level Match This screen displays the lines of the invoice to be matched to the lines of the receipt. Select the invoice lines and the receipt lines. Use the select option. Then choose the match option or chargeback option. If messaging flags on Match Company are set to YES additional processing will occur. If match is the option and messaging is used a message will be created to resolve the difference. If match is the option and messaging is not used the invoice will be released and approved. The difference between the invoice and the receipt will booked to accounts based off the purchase order line type. Inventory line item discrepancy will write to the item cost variance suspense. Non-stock and special line item discrepancy will write to the accounts on the purchase order line. February 17, 2005 Rocky Mountain Lawson User Group

After Match If your organization uses messages there are other actions that will take place after the reconciliation process. It is possible to unmatch an invoice prior to the payment process or distribution posting. It is also possible to reverse a payment on a matched invoice. Invoices can be approved without receipts by using Match Invoice Approval. Open receipts can be written off and the purchase order line closed. Invoices paid and no receipts every recorded invoice line can be written off. February 17, 2005 Rocky Mountain Lawson User Group

Archive Only Option (MA180)
HC driven requirement Receipt archival Original functionality: receipt write off New functionality: no expense recognized if invoice is not present MA180 Enable users to archive only on MA180 (Open receipt archive). Currently the options are to write-off and write off and archive. Both of these choices would affect the GL postings through write-off. Archive would only enable the user to archive with no affect on the GL postings. This design will enable the user to run PO136 Matched, Not Received for inventory and non-inventory items without creating journal entries for Match Write-off. February 17, 2005 Rocky Mountain Lawson User Group

MA180 - Archive Only Option

Reconciliation Filter (MA60)
Filter out invoices: with Open PO Cost Messages with no receivers AP can focus on invoices they can take action on February 17, 2005 Rocky Mountain Lawson User Group

Reconciliation Filter February 17, 2005 Rocky Mountain Lawson User Group

Match Invoice Reconciliation

Buyers Responsibility
Have the most updated cost in the Vendor Agreement (PO25) Use PO536 to update Agreement pricing Resolve cost and buyer messages in a timely manner Review user requisitions with special and service items for cost and correct vendor Use Buyer Worksheet (PO22) to verify cost Determine if a requisition can accept entered cost for X and S type items (“Use Entered Cost” flag on RQ04) February 17, 2005 Rocky Mountain Lawson User Group

AP Responsibility Verify PO Vendor and AP Vendor are the same Verify correct entry of invoice Invoice Total = Invoice Detail + Invoice AOC + PO AOC (+ Tax) February 17, 2005 Rocky Mountain Lawson User Group

AP Responsibility Promptly identify all invoice match problems and notify appropriate person(s) System only creates Invoice Messages for pricing discrepancies System messages do not always clearly identify all problems with a match Utilize various inquiry screens to research matching problems. Such as PO64 and PO54 Document all identified invoice problems February 17, 2005 Rocky Mountain Lawson User Group

AP Responsibility Monitor the Reconciliation Queue Consider use of Chargeback functionality February 17, 2005 Rocky Mountain Lawson User Group

Managing the Reconciliation Queue
Identify clear responsibilities and procedures for resolving common invoice problems types before live processing begins Document invoice problems and steps taken to resolve Hard copy documentation, Use of Invoice Comments and Reason Codes February 17, 2005 Rocky Mountain Lawson User Group

Managing the Reconciliation Queue
Create an expeditor role to monitor and expedite resolution of problem invoices Accounts Payable or Purchasing Run MA126, Auto Matching regularly and review report Create a separate Match Rule Group just for Auto match and test it Create a Matching Improvement Team with members from Accounts Payable, Purchasing and Receiving and meet regularly February 17, 2005 Rocky Mountain Lawson User Group

Matching in the Reconciliation Queue
Pros Must match in Reconciliation Queue to fully use Chargeback functionality Give AP more control over matching process and ability to expedite match of an invoice Only way to match multiple invoices to one receipt in without using the IM level match in the Match Rule Groups February 17, 2005 Rocky Mountain Lawson User Group

Matching in the Reconciliation Queue
Cons Gives AP more control over matching process – can be dangerous tool if not used correctly Requires a high degree of skill and understanding to use correctly – suggest limiting access to a few well trained staff members Difficult to view and research detail lines in queue February 17, 2005 Rocky Mountain Lawson User Group

Using Reconciliation Messaging
Setup recon messaging on Match Company form (MA01) Pros Creates a secondary check for some unresolved invoice matching problems before invoice is approved Cons Once an invoice is matched in the Queue, even though it creates a Reconciliation Message, the invoice cannot be changed. Reconciliation Messages are sometimes created for invoice pricing problems that have already been resolved February 17, 2005 Rocky Mountain Lawson User Group

Invoice Messaging Ability to create messages for buyer approval based on user defined criteria on the Match Company form. Messages must be resolved to allow further processing on the invoice. Trigger points have been created to create work units to be used with process flow files. (.flo) Invoices with messages can not be selected for payment or posting. Message Points Invoice Entry Invoice Reconciliation Invoice Release February 17, 2005 Rocky Mountain Lawson User Group

PO Cost Messages Messages created when the Match invoice is entered and compared to the Purchase order. Must create invoice line item details for Cost message creation. Invoice must have a match Handling Code. Must have DM rule level selected on Match Company Messaging Tab. By comparing the invoice unit cost to the PO unit cost, the user is able to identify discrepancies between the PO and the invoice prior to match. PO does not have to be received to create PO Cost messages. The PO Cost Message must be resolved to have invoice available for match Invoice is unreleased, unmatched and unapproved status. February 17, 2005 Rocky Mountain Lawson User Group

Reconciliation Messages
These messages are created when a match is attempted in the reconciliation queue and is not within user defined tolerances. Must create invoice line item details for cost message creation. Invoice must have a match Handling Code. Must have DM rule level selected on Match Company Messaging Tab. These messages are for cost, quantity and no receipt line differences. Invoice is released, matched and unapproved. February 17, 2005 Rocky Mountain Lawson User Group

Drop Ship Messages Drop ship messages are created through the invoice release process. During release process the cost and quantity on the invoice is compared to the cost and quantity on the PO Must create invoice line item details for message creation. Invoice must have a drop ship Handling Code. Must have DM rule level selected on Match Company Messaging Tab. These messages are for cost and quantity line tolerances . The tolerances can be for over or under variances. Drop Ships have no receiving. The invoice is released and unapproved. February 17, 2005 Rocky Mountain Lawson User Group

Service Purchase Order/Agreement Messages
Service Messages are created through the invoice release process. During the release process the cost on the invoice is compared to the cost on the PO or service agreement. Must create invoice line item details for message creation. Invoice must have a service Handling Code. Must have DM rule level selected on Match Company Messaging Tab. These messages are for unit cost only tolerances. Service invoices have no receiving. The invoice is released and unapproved. February 17, 2005 Rocky Mountain Lawson User Group

Questions? February 17, 2005 Rocky Mountain Lawson User Group

Tim Salaver Enterprise Solutions Practice Director Heritage Global Solutions
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