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Invoice register and matching process to PO

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Posted on by Liz Foy

On receipt of a supplier invoice, our PL team lookup the supplier and identify if a receipted PO is in place. If there is, the invoice is entered against the PO. If not, the invoice is placed to one side and reattempted at a future point in time.This is rather inefficient.

The process I would like to see is

1) All invoices are initially logged in a register regardless of whether a PO is available or even if it has been receipted. The appropriate entries can be made to the balance sheet to recognise a liability exists but insufficient information yet exists to post it to the P&L.

2) If an PO exists, it is logged against the invoice register line

3) The invoice can be processed against the PO if it has been appropriately receipted

4) If the PO is not receipted, some sort of process exists to allow the team to either easily identify that a receipt is now available against that PO or a report exists for them to review.

We do not currently use the invoice register/pool and therefore we are not familiar with its functionality and what it can/can`t do... or even the difference between the two.

Can anyone advice on best practice n D365 to handle the above?

Many thanks

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André Arnaud de Cal... 301,171 Super User 2025 Season 2 on at

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Hi Liz,

There is no recurring automated matching available in Microsoft Dynamics 365 for Finance and Operations. You can use three-way matching starting from pending invoices. If you are going to use the invoice register in standard MSDyn365, then the story will be more cumbersome as you can't save pending invoices in an approval journal.

You can have a look at ISV solutions which are able to do it. To-Increase (my company) has two solutions as an offering. One build inside F&O and one which is an external solution with an integration option.

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Satish Panwar 14,671 Moderator on at

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Hi Liz,

you should explore 'Pending invoice form'. That will help you record all invoices so you don't have to stack them separately. The invoice/pool/register form are used to track non-PO invoices.

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Liz Foy 20 on at

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Thank you.

What does the pending invoice form do? Does it allow me to log invoices against an unreceipted PO?

I noticed the invoice register has a field for PO, what purpose does this serve?

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Satish Panwar 14,671 Moderator on at

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That is correct (Record invoice when you get them irrespective of PO status). See below.. the PO is still open. The screenshot is from D365 but its available in AX 2012 as well.

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Ludwig Reinhard Microsoft Employee on at

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Hello Liz,

Agree with Andre.

If there is no necessity to go with the 'old' invoice register option, I would rather use the pending vendor invoice form as it allows recording purchase order and expense related invoices in one single screen.

Best regards,

Ludwig

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André Arnaud de Cal... 301,171 Super User 2025 Season 2 on at

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When you create a pending invoice, you have to keep track of it manually if the receipt was posted already or not. You can then consider a customization or have a look at ISV solutions like mentioned above.

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Satish Panwar 14,671 Moderator on at

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Hi Liz,

do you have any other question on this thread. If your original question has been answered, can you take time to help verify the answers that helped you.

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Liz Foy 20 on at

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Our teams are presented with the following scenarios:

1) supplier invoice where no PO number is quoted (one may or may not exist). The team need to establish whether to reject it for not having one or whether the supplier forgot to quote the PO.

2) supplier invoices with POs quoted and the PO has been receipted

3) supplier invoices with PO number quoted but the PO has not yet been receipted. The PL team have been telling me they cannot enter the invoice until this happens. In this scenario, they place the invoice to one side and try again once they become aware it has been receipted (Again they rely on the requisitioner either telling them or they themselves going in and having a look)

4) supplier invoices which do not go through the PO process where business approval will need to be sought. At present, they do this via email. I want an approval workflow setup in the system.

I`m looking for the most efficient options to process the above. Ideally, I only ever want the team entering the invoice into the system once.

Ideally it would be good for ALL invoices to be input in the one place.

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Pedro Tornich 955 on at

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You can use invoice register for all the scenarios you mentioned, because you can enter the invoice despite the PO status and then, when it's received, you can match it to the corresponding PO.

The problem is that this matching process is not automated. As André mentioned, if you want the system to automatically match a pending invoice with its PO you will need some development.

To avoid development on this point, after placing the invoice in the system the user can create an alert rule on the corresponding PO, so he will know when the PO is received without having to check it periodically, and once it's received he can go to the invoice and do the matching.

The only thing that's completely unavailable out of the box is the workflow you mentioned. For that you will need development anyway. Even if you use a Logic App to automate the emailing part, you would still need a new field on the table to hold the approval status.

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