Additional Tips for Managing Invoice Matching business scenarios in Microsoft Dynamics 365 finance and Operations: Part-3

In this blog, I will try to explain few setups which we can do to manage additional scenarios for invoice validations.

Please read other parts here Part-1 and Part-2

Tip-1: Override or define Line matching policy to specific Item and Vendor

We define three-way matching principal at accounts payable parameters which is at company level but now customer comes back with few exceptions and says following:

1. Define two-way matching to few vendors or items
2. No matching principal for few vendors or items

All this can be managed using Matching policy where we define policy at lower level specific to item and vendor.

Tip-2: Define invoice total tolerance specific to Vendor

We define invoice total tolerance on accounts payable parameters which is company specific now customer comes back and says they want to define different tolerance for few vendors.

Tip-3: Define charge total tolerance specific to Vendor

We define charge total tolerance on accounts payable parameters which is company specific now customer comes back and says they want to define different tolerance for few vendors.

Tip-4: Managing disputes/discrepancies for invoice matching

Let’s understand this with following scenario where supplier has submitted invoice with different price or quantity, and we don’t accept that as part of tolerance defined for invoice validation setup.

Also, we can not return invoice to supplier and supplier says that accept this invoice and we will be sending you the credit note for differential amount.

Now how do we manage this???

Price dispute: We can’t change price and post invoice because then inventory cost will be inflated

Quantity dispute: We can’t change quantity because we will have inventory which we have never received.

So, now to manage this without changing price and quantity, we can utilize charge code.

We can create two charges codes one for price and another for quantity.

What will this do?

Example: Price dispute, let’s say Expected invoice is of 100 but supplier submitted 120

We can add price dispute charge code with amount 20 which will have following accounting impact:

Stock/Expense Debit 100

Price dispute charge Debit 20

           Vendor Credit 120

Now you receive credit note from supplier

Vendor Debit 20

         Price dispute charge credit 20

Now, price dispute charge account will be knocked off completely.

Same, can be for quantity dispute, we can add amount difference due to quantity.

That’s it for this blog, hope this will help you to manage charges codes.

Thank you !!! Keep reading and sharing !!!