What is PO matching?
Written by The editorial team
PO matching stands for 'Purchase Order Match' and is used in accounting and purchasing. This function is especially relevant for customers with inventory. By comparing incoming invoices with the goods receipt, PO matching ensures that the invoice corresponds with the order and that the correct goods/services have been received.
By using PO matching, you ensure control, accuracy, and a higher degree of automation in the accounting.
"The PO matching function is a game-changer for larger companies managing inventory. By automating this process, you free up valuable time for your employees, allowing them to focus on more strategic tasks."
Atle Ådnebergli, Head of Sales Compello
The PO matching process involves comparing two documents: the goods receipt confirmation and the invoice. The purpose of PO matching is to ensure that all documents match in terms of quantity and price of the goods purchased. If everything matches, the invoice can be paid.
If there are discrepancies, you will be notified.
The PO-Matching process largely consists of the following steps:
Purchase Order Creation: When an organisation wishes to purchase goods or services from a supplier, a purchase order is created specifying details such as product descriptions, quantity, price, and delivery date.
Goods/Services Delivery: The supplier sends the ordered goods or provides the agreed-upon services to the organisation. This can include the shipment of physical goods or delivery of digital services.
Invoicing: The supplier then sends an invoice to the organisation documenting the costs of the delivered goods or services. The invoice typically contains information like the invoice number, date, description of goods/services, amount, and any discounts or charges.
PO Matching: In the PO Matching process, the goods receipt is matched against the invoice. This includes verifying that the invoice number aligns with the order number. If everything matches correctly, the invoice can be approved.
Fair is Fair
Compello supports both header and line matching against goods receipt. For example, when goods are registered in the warehouse, the goods receipt will be transferred to Compello and await the invoice. If the invoice arrives as EHF or through invoice reception, Compello will take each line of the invoice and match it against each line of the goods receipt.
If your business processes a large number of product invoices annually, you can save substantial amounts with this extension.
By using PO matching, you ensure accuracy and efficiency for the finance department in the purchasing process.