Set Purchase Order Matching Rules by Supplier with X3CloudDocs Inbound

By Paul Mincer
February 29, 2024

When you’re processing invoices linked to Purchase Orders, then the more information you have at your fingertips, the faster and more accurately you’ll be able to process each invoice. For instance, you might typically only pay suppliers when you receive their deliveries, but then you might have others where you need to pay invoices before the goods are in your warehouse – or perhaps for certain suppliers you don’t receive the goods at all, and they go straight to your customers. Having to deal with these and other complexities can slow down processing, leading to delays in payment.

In situations like these, you need the right level of detail for your POs, so that you can aim to automate the matching process as much as possible. That’s why we think you’ll like what we’ve done in X3CloudDocs Inbound.

Now you can set a general rule to determine whether Purchase Order lines or associated Purchase Receipt lines are synchronised from Sage X3 to X3CloudDocs. Then, you can set exceptions by the supplier, so that line-level Order, Receipt or Packing Slip quantity and price details are automatically sent from Sage X3 for invoice matching, as required for each supplier. If you only pay suppliers on goods receipt, then you’ll get receipt level details available, with either the X3 Receipt or Packing Slip number as a point of reference, and the relevant quantities for each receipt. If no receipts are available, then you’ll know straight away and can act accordingly. For other suppliers, you’ll be able to send Order line details, as of now.

You can now display receipt level details against each order line when matching invoices. Here we see that for this supplier the Order Line column for each line also includes a reference to a Packing Slip or Receipt number and then the Receipt line number. Quantities displayed then reflect the receipt quantity for each line.

In either case, when the invoice lands in Sage X3, a six-step process, as outlined later in this blog, will ensure the right level of matching for your invoices.

Synchronisation of Purchase Order details from Sage X3 is now managed using Export Data Table definitions, or EDTs. Using EDTs, you can decide on a general PO matching rule (applying PO, Receipt or Packing Slip lines as the default) and then decide which suppliers should be exceptions to this rule.

For example, using the scenario above, you might decide that you generally want to be able to match invoices against Receipt or Packing Slip lines and that this rule covers a high percentage of invoices across all suppliers. Then you might have other suppliers where invoices always need to be paid before the goods arrive – for those suppliers, order lines would be needed. Similarly, if you have drop ship arrangements with suppliers, but POs need to be signature managed, you can tell X3CloudDocs that PO lines are required, and only if the order is approved. And so on…

You can now display receipt level details against each order line when matching invoices. Here we see that for this supplier the Order Line column for each line also includes a reference to a Packing Slip or Receipt number and then the Receipt line number. Quantities displayed then reflect the receipt quantity for each line.

In Sage X3, you can define each of the above criteria (and more!) as specific EDTs, and then group them together, so that a single synchronisation, controlled using a new general parameter where you define the “master” EDT, extracts the right level of line detail for each supplier for presentation in X3CloudDocs.

X3CloudDocs 2024 R1 comes with a set of “factory” EDTs that you can use as templates to create your own versions and a new guide is included in the documentation for this release to help you with this, explaining how to set up definitions and including suggested filters that you might choose to apply.

But that’s only half of it…

Now, when you process PO-related invoices in X3CloudDocs, the resulting invoice lines will undergo a number of checks in Sage X3 to determine how to match them against PO and receipt lines, so that either 2- or 3-way matching can be correctly completed:

  1. Match to Receipts, based on Receipt or Packing Slip line numbers identified and selected for the invoice;
  2. Match to Receipts, based on a Packing slip number defined on the invoice header to identify the correct receipt line for the PO line selected;
  3. Match to Receipts, based on a Receipt number defined on the invoice header to identify the correct receipt line for the PO line selected;
  4. Match to Receipts, if no Receipt or Packing Slip number is defined on the invoice header – earliest receipt first;
  5. Match to PO line only, if no receipt quantities are available or correctly identified;
  6. A Miscellaneous line is created if no valid PO details are present on the invoice.

These tests will be applied in the order listed above, so, in common with general practice in Sage X3, matching of receipt lines takes priority over general order, receipt or packing slip header matching.

For more details on upgrading to this release of X3CloudDocs Inbound, please contact your implementation partner.

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What Customers Say About X3CloudDocs:

Efficient AP processes directly impact relationships with both suppliers and internal stakeholders. Automated systems facilitate timely and accurate payments, enhancing the trust and collaboration between businesses and their suppliers. Moreover, AP automation will automate “embarrassing” tasks such as chasing whether internally for approvals or payments externally, cutting out the “guilt or embarrassment” and speeding up the process.

Alex Stephens – TIMCO

X3CloudDocs has really automated our company’s AP processes. We now spend less time doing manual work and has truly made our AP processes very easy and efficient. The solution is very user friendly and the interface is easy for even a novice to navigate. As many other companies experience we have several control points and validation checks along with approval hierarchy we need to employ day to day and X3CD almost seamlessly integrated with our existing processes and controls. 

Heather Sauceda – Transpak

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