Purchase Order Matching to Purchase Invoice

This guide describes how to allocate a purchase order to a purchase invoice. Allocating allows the linking of cost object calculations and product lines used in the purchase order to the purchase invoice.

CONTENTS

• Allocating a purchase order to a purchase invoice
• Linking transactions
  • Price handling replaces all new allocations with purchase invoice lines with purchase order lines.
• Delivery of the purchase order
• Frequently asked questions

Allocating a purchase order to a purchase invoice

You can open the allocation view by selecting Purchases > Purchase orders > select purchase order > Allocate invoice or Purchases > Purchase invoices > select purchase invoice > Actions > Link lines.

A purchase order can be allocated to a received purchase invoice. The purchase order must be sent/locally printed to enable allocation. The invoice allocation does not make a warehouse entry in the background, but the lines must be handled in the delivery receipt section and specify when the purchase order lines have arrived at the warehouse. This allows you to define line by line when each product has arrived at the warehouse, and you no longer have to wait until the purchase invoice arrives.

Allocating a purchase order requires read or edit rights to the purchase price, which can be set in the Sales and Purchase Ledgers rights, as well as the factual verification and/or approval rights. Adding/editing rights requires KH rights. To perform the allocation or access this view, you must also have edit rights to purchase orders.

A purchase order can be linked to a purchase invoice, allowing the cost object calculations and product lines used in the purchase order to be transferred to the purchase invoice. Allocating is done from the purchase order view via the "Allocate invoice" link. The number of purchase order lines linked to the purchase invoice is displayed next to the Allocate invoice link.

Alternatively, you can access the view through the Actions button of the purchase order or purchase invoice by selecting "Link lines...".

If the lines are already linked, they are displayed in the linked purchase orders section.

In this example, purchase order 25 is allocated to purchase invoice 1616. The purchase order appears on the right side and the purchase invoice on the left side.

To search for purchase invoices in the allocation view, proceed as follows:

1. Click the "Add purchase invoices" button.
2. Search for purchase invoices found in the system. By default, invoices from the same vendor are searched, and the status is Unprocessed.
3. If the purchase invoice is not found in the system, check the invoice status and change it if necessary.
4. Select the correct purchase invoice.
5. Click "Add selected purchase invoices".

• 2. Paid. First shows how much of the purchase invoice has been paid and / - after the slash is the total amount of the purchase invoice.
• 3. Linked. Shows in currency how much of the purchase order amount has been linked to the purchase invoice / - after the slash is the total amount of the purchase invoice.
• 4. Delivery status. Shows the delivery status:
  • "Delivered" when all lines of the purchase invoice are marked as delivered.
  • "Partially delivered" when some lines are delivered.
  • "Undelivered" when the lines are not processed.

  Allocating the purchase order to the purchase invoice does not update this status, but it must be done in the delivery receipt view. By clicking the Delivery status field, you can access the delivery receipt view.

• 5. Linked. Shows as a sum how much of the purchase order has been linked to the purchase invoice. The first point is the linked amount and / - after the slash is the total amount of the purchase order.

Linking transactions

The actual linking is done as follows:

1. Select one line from either side (purchase invoice or purchase order) to be allocated.
2. Select the line or lines from the other side to which you allocate.
3. Press the "Save changes and link lines" button.

In the example below, one purchase invoice line is linked to three purchase order lines. The linking is saved by pressing the "Save changes and link lines" button.

After this, the lines are linked together. Next to the Save button is an upward triangle, which opens two new options for linking when clicked:

• "Remove links from selected lines" removes existing links and can be used if the linking was initially done incorrectly. The linking can be removed from all lines or just the selected line.
• "Replace all new allocations with purchase invoice lines with purchase order lines" replaces the invoice and posting lines of the purchase invoice with the lines of the purchase order. This way, the cost object calculations used in the purchase order can also be transferred to the purchase invoices. The purchase invoice line information can only be replaced with the selected purchase order line information if the purchase invoice is unprocessed.

NOTE. Line selection works with the following logic:

• First select one line from either side to be allocated.
• Then select from the other side the lines to which you allocate.
• Do not select all lines simultaneously, because otherwise the system cannot determine which line matches which, especially if the product codes and names are not the same.

With the help of purchase invoice automation, allocation can be automated.

Note. If lines are replaced, the period must be open. Otherwise, allocation would also succeed for a locked period purchase invoice.

NOTE! The one-time posting function must NOT be used on a purchase invoice related to a purchase order. This permanently removes the relationship between purchase invoice lines and posting lines and prevents the inheritance of posting information from purchase order allocations (posting and cost object calculation).

Price handling replaces all new allocations with purchase invoice lines with purchase order lines.

Delivery of the purchase order

You can open the delivery handling of the purchase order by selecting Purchases > Purchase orders > select purchase order > Allocate invoice > delivery handling or Purchases > Purchase orders > select purchase order > Delivery receipt.

The purchase order can also be set as fully delivered in the invoice linking view. There is an option "Handle the entire purchase order as delivered". In this case, the entire purchase order is marked as delivered.

If only some products have arrived, handle the partial delivery in the delivery receipt view. When the purchase order is fully delivered, it can be archived, causing it to disappear from the purchase order view.

From the menu above, you can also remove the purchase order from the listing. Similarly, if you select the same option for the purchase invoice, it removes the purchase invoice from the linking view.

With the option "Update unit price of purchase order lines from linked purchase invoice lines", you can update the new unit price to the selected purchase order from the linked purchase invoice. The update function requires the following:

• Linking transactions must be done first.
• The one-time posting function must NOT be used on a purchase invoice related to a purchase order. This permanently removes the relationship between purchase invoice lines and posting lines and prevents the inheritance of posting information from purchase order allocations (posting and cost object calculation).
• The purchase invoice requires e-invoice lines (Invoice lines) for the lines to be updated with the purchase price. The original scan service posting line cannot be used because it does not have the concepts "Quantity" or "Unit price".

Below is an example of this for the purchase invoice.

If there are no e-invoice lines, i.e., the invoice has come through the scan service or has been entered manually, proceed as follows:

1. Open the Linking transactions view.
2. Select the upward triangle button next to the "Save changes and link lines" button.
3. Select "Replace all new allocations with purchase invoice lines with purchase order lines".

If the vendor cannot provide an e-invoice, do not allow consolidated invoicing, but require one invoice per purchase order. Since the purchase order line replacement function for the purchase invoice removes all line information from the purchase invoice and replaces it with the selected purchase order lines, the replacement function cannot succeed for multiple purchase orders on the same invoice.

Therefore, the vendor must be required to provide one invoice per purchase order (multiple invoices for partial delivery are possible), or switch to e-invoicing. The problem arises when the vendor invoices the contents of multiple purchase orders consolidated on one invoice.

If the unit prices of the purchase order are updated in this way, it will appear in the purchase order processing history. The price update goes to the purchase order line and also as the purchase price of the respective procurement batch in the warehouse.

Below is a complete picture where the purchase order is linked to three purchase invoices (the example includes a separate purchase invoice for freight and surface treatment) and the actual goods are invoiced on one purchase invoice.

If the purchase order is invoiced through scanning according to partial deliveries, e.g., for the 3 lines in the image above, 1 and 2 lines separately, you can proceed as follows:

• Replace the same line content for both invoices from the respective purchase order.
• Manually remove the lines that do not belong to the partial delivery invoice.
• Edit line prices if necessary.

These actions are necessary if a price update is needed for the respective batch in the purchase order/warehouse.

If you just want to link lines, e.g., for the accounts payable manager's information about the received immaterial service, creating an e-invoice line may not be necessary, and using only posting lines may be sufficient to convey information to the purchase invoice approver.

Naturally, all this manual work is unnecessary with e-invoicing, and allocation can be automated with accounts payable automation rules.

If the purchase order is allocated to the purchase invoice, it can be seen from the Open purchase orders view or through the Purchase order list in the "Order lines allocated" field.

Frequently asked questions

Question: What are the requirements for allocating a purchase order to a purchase invoice?
Answer: Allocation requires that the purchase order is sent or locally printed. In addition, read or edit rights to the purchase price, factual verification and/or approval rights, and edit rights to purchase orders are needed. Adding or editing rights requires KH rights.

Question: Does allocating a purchase order to a purchase invoice update warehouse entries or delivery status?
Answer: Allocation does not make a warehouse entry or update the delivery status. Delivery receipt and delivery status are handled in the Delivery receipt view.

Question: When can I use the function "Replace all new allocations with purchase invoice lines with purchase order lines"?
Answer: You can use this function when you want to replace the invoice and posting lines of the purchase invoice with the lines of the purchase order and transfer the cost object calculations used in the purchase order to the purchase invoice. The purchase invoice must be unprocessed, and the period must be open if lines are replaced.

Question: Why must the one-time posting function not be used on a purchase invoice related to a purchase order?
Answer: One-time posting permanently removes the relationship between purchase invoice lines and posting lines and prevents the inheritance of posting information from purchase order allocations (posting and cost object calculation). For this reason, one-time posting must not be used on a purchase invoice related to a purchase order.

Question: How do I update the unit price of purchase order lines from the purchase invoice?
Answer: First perform Linking transactions. Make sure that one-time posting has not been used on the purchase invoice and that the purchase invoice has e-invoice lines (Invoice lines). Then select "Update unit price of purchase order lines from linked purchase invoice lines" in the linking view.

Question: What should I do if the purchase invoice has come through the scan service and does not have e-invoice lines?
Answer: Open the Linking transactions view, click the triangle next to the "Save changes and link lines" button and select "Replace all new allocations with purchase invoice lines with purchase order lines". This way you will get the purchase order lines to the purchase invoice.

Question: Why is consolidated invoicing not recommended if the vendor does not send e-invoices?
Answer: The purchase order line replacement function removes all line information from the purchase invoice and replaces it with the selected purchase order lines. It is not possible to replace lines from multiple purchase orders on the same invoice. For this reason, one invoice per purchase order must be required or e-invoicing should be used.

Keywords: purchase order, allocating, purchase invoice, delivery

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