3 way Invoice Matching

Is there any way or setting in Manager ERP to activate 3 way invoice matching of Invoice??
Currently there seems no matching/restriction concept of Invoice/Payment with GRN…
If GRN is of 100,000 one can even enter invoice of 200,000 against that GRN and make of Payment of 500,000 against that invoice. Plz guide. Thanks.

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Your question is not clear. What is GRN? And what is 3-way invoice matching?

GRN Means Goods Receipt note.

In the accounting and bookkeeping area of accounts payable, the three-way match refers to a procedure used when processing an invoice received from a vendor or supplier. The purpose of the three-way match is to avoid paying an incorrect and perhaps fraudulent invoice.

Example of Three-Way Match
The “three-way” part of the three-way match refers to the three documents that will be compared:

  • The vendor’s invoice that was received and will become part of an organization’s accounts payable when it is approved
  • The purchase order that was prepared by the organization
  • The receiving report that was prepared by the organization

The “match” part of the three-way match refers to comparing the quantities, price per unit, terms, and other information appearing on the three documents. In other words, does the vendor’s invoice detail agree with the organization’s purchase order, and to the goods actually received as shown on the organization’s receiving report? Only if the details on the three documents are in agreement will the vendor’s invoice be entered as an account payable.

The three-way match is an important step in safeguarding an organization’s assets.

What you describe is accomplished in Manager as follows:

  • Create a purchase order when ordering goods. Read this Guide: Issue purchase orders | Manager.
  • When a sales invoice is received from the supplier, enter it as a purchase invoice. Read this Guide: Create purchase invoices | Manager. The easiest way to do that is to use the Copy to function to copy the purchase order to a purchase invoice. Read this Guide: Use the Copy to function | Manager. Comparison should occur at this stage. This process is not automatic. But, if anything differs from the purchase order, edit the purchase invoice accordingly so the account payable is correct. (Purchase orders have no financial impact.)
  • Goods receipts are optional. If not used, the program assumes receipt was simultaneous with entry of the purchase invoice. If used, goods are not added to inventory until the goods receipt is created, but are shown as still to be received. Read this Guide: Create goods receipts | Manager. Either the purchase order or purchase invoice can be copied to the goods receipt. If goods received do not match goods invoiced, the undelivered goods will remain in the to-be-received category.

There is also a three-part series of Guides on inventory management that explains overall workings of the various inventory functions in Manager.

While documents can be copied to create one from the other, and undelivered quantities can remain to be delivered, there is no concept of automatic price or quantity received matching holds to prevent payment of an invoice in manager.

To add onto this discussion, can we have the same feature show the PO balance if the purchase invoice does not match the PO issued 100%

This in my situation is common since a supplier may provide goods and services in parts from the same PO and payment gets activated on each invoicing.

If possible consider a feature that limits the maximum invoicable and payable to match the PO value.

@kendirangu, you seem to have missed the point that purchase orders have no impact in Manager. So the program compares them with nothing and makes no use of them.

In fact, many users would be happy to receive extra goods. Others enter purchase invoices in response to supplier-created sales invoices and would not be at all happy with such restrictions.

@Tut What @munir.shafi suggesting is more control over purchase orders. They want to be able to match and link purchase orders to supplier invoices to know what has or has not been invoiced as well as to grn which would give information with respect to whether they still owe us goods or if we owe them for goods that they did not invoice.

As per my understanding, Manager currently keeps track of monetary value outstanding with suppliers, what is being asked is to keep track of outstanding quantities as well.

You are incorrect. Manager does not keep track of amounts remaining on purchase orders. The program does nothing with purchase orders.

Can we please make it look at the purchase orders. :slight_smile: