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Invoice Matching TIPS. What you really need to know about Lawson’s MA Module. PO Receipt Archival Reconciliation Filter Inv Message Listing Process Flows and Triggers AOC Reporting Duplicate Payment Report Smart Notifications Matched, Not Received JE. Invoice Matching Enhancements in 8.1.

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invoice matching tips

Invoice Matching TIPS

What you really need to know about Lawson’s MA Module

invoice matching enhancements in 8 1
PO Receipt Archival

Reconciliation Filter

Inv Message Listing

Process Flows and Triggers

AOC Reporting

Duplicate Payment Report

Smart Notifications

Matched, Not Received JE

Invoice Matching Enhancements in 8.1
  • Prepayment Processing
  • Quantity Tolerances
  • Chargeback Numbering
  • More Lines on Invoice Detail Entry Screen
  • Combining of Invoice Detail Entry Screens
  • Tax Code for PO Invoices
  • Enhancements to Auto Match Output

Rocky Mountain Lawson User Group

match processing
Match Processing

The match process compares the Invoices and Receipts in a match pool in order to eliminate the need for human intervention. If there are match exceptions they can be handled through a reconciliation process and messaging if that is required.

Rocky Mountain Lawson User Group

unmatching an invoice
Unmatching an Invoice
  • If an invoice has not been posted to General Ledger, it can be unmatched in MA70 – Invoice Unmatch.

Rocky Mountain Lawson User Group

when tolerances do not work
When tolerances do not work
  • Check the match tolerance set up at the company and vendor level on MA00.9 and AP10.1.

Rocky Mountain Lawson User Group

match pool
Match Pool

Receipts

Invoices

Match Pool
  • Match pool is based on set up and use of organizational comparison rules being applied to a grouping of invoices and receipts in order to automate the processing and payment of those invoices.

Rocky Mountain Lawson User Group

quantity tolerances
Quantity Tolerances
  • Compares invoice quantity with receipt quantity
  • Must use Detail Level match

Rocky Mountain Lawson User Group

invoice matching setup
Invoice Matching Setup
  • Tolerances
    • Tolerances are setup for Match Rules and are specific to an organization
    • Without tolerances operator intervention will be required for every transaction that does not have an exact dollar match
    • As part of a match rule, you can select whether to generate chargebacks for matches that occur within tolerance

Rocky Mountain Lawson User Group

setting tolerances
Setting Tolerances
  • Determine what percentage of matched invoices should be processed automatically by using the Normal Distribution Curve

Rocky Mountain Lawson User Group

chargeback numbering in 8 1
Chargeback Numbering in 8.1
  • Numbering of chargebacks is now more user friendly
  • Used to be system assigned number
  • In 8.1 chargeback number =

original invoice number – 111 (suffix)

Rocky Mountain Lawson User Group

finding the chargeback number
Finding the Chargeback Number
  • In AP30.2 you can inquire on invoice and drill on "related invoice transactions" or in AP90.1 inquire on invoice and drill on "related invoice transactions".

Rocky Mountain Lawson User Group

common reasons for unmatched invoices

Common Reasons for Unmatched Invoices

System Issues in version 8.0.2

Vendor Issues

Purchasing and Receiving Issues

Invoice Issues

system issues in 8 0 2
System Issues in 8.0.2
  • No flexibility in matching multiple invoices to one receipt in DM
  • Cannot un-match and cancel a PO once posted to the GL
  • Cannot combine Service and Special items on one PO

Rocky Mountain Lawson User Group

common reasons for unmatched invoices21
Common Reasons for Unmatched Invoices
  • Vendor Issues
    • Invoices with wrong PO numbers
    • Invoices with no PO numbers
    • Invoices for a closed PO
    • Invoice lines not on a PO

Rocky Mountain Lawson User Group

common reasons for unmatched invoices22
Common Reasons for Unmatched Invoices
  • Purchasing and Receiving Issues
    • Item costs are not updated in the item master file in a timely manner
    • Use of “Add Receive All” function (PO30) versus what’s on the packing slip
    • Lines cancelled / closed
    • Delayed receiving for off-site locations
    • Vendor information on PO and Invoice do not match

Rocky Mountain Lawson User Group

common reasons for unmatched invoice
Common Reasons for Unmatched Invoice
  • Invoice Issues
    • Use of Incorrect handling code
    • Use of “Create Detail” action (MA43), but cost and quantity are not reviewed
    • Line item details on Invoice do not agree with line items on the Purchase Order

Rocky Mountain Lawson User Group

new rule in 8 0 3
New Rule in 8.0.3
  • Invoice Matching (MA) version 8.0.3 has an additional rule level option available--DM A-1. This level will allow multiple invoices to be matched to one receipt. For example, DM A-1 will allow one receipt for a quantity of 10 to be matched to multiple receipts as follows:

Rocky Mountain Lawson User Group

new rule in 8 0 326
New Rule in 8.0.3
  • DM A-1 must be the first rule level set up in the rule group. If the system can match at any other level prior to reaching the DM A-1 level, the functionality will not be available for future invoices against that receipt.
  • If the invoice quantity multiplied by the unit cost is less than the receipt quantity multiplied by the unit cost, but is still within tolerance, the system will match at DM 1-1 or DM 1-A and not leave a quantity remaining to match later.

Rocky Mountain Lawson User Group

unit option rule usage
Unit Option Rule Usage
  • The Unit Option rule affects match rule groups.
  • Purchase order line for 10 items at a price of $10.00 each. Receipt for 10 items. Invoice is entered for $100.00, with purchase order details for 5 items at a price of $20.00 each.
  • Invoice Qty does not equal Receipt quantity – NO MATCH
    • Out-of-tolerance error message generated and does not match on AP20/MA43/MA126
  • Using the Extended Rule option, the Invoice Matching (MA) system matches this invoice to the receipt. (Extended cost of both the invoice and receipt are $100.00.)

Rocky Mountain Lawson User Group

lim does not work in 8 0 3
LIM does not work in 8.0.3
  • Lawson discommends use of LIM in MA 8.0.3
  • It’s use is not well-defined and does not work consistently

Rocky Mountain Lawson User Group

match completed
Match Completed?
  • If the match is successful the invoice will proceed through the system onto payment.
  • If match was not successful the invoice will be available in the Reconciliation Queue for review.
  • Reconciliation allows the user to look more closely at the invoice and the receipts available for that invoice.
  • Through the forced match in the reconciliation screens invoice messaging is also triggered.

Rocky Mountain Lawson User Group

tax validation msp 2
Tax Validation (MSP#2)
  • Validation that invoice tax equals or is within tolerance of sum tax distributions.
  • If tax is not in balance invoice will not match and it will not be released.
  • AP Company:
    • Tax Tolerance Amount
    • Tax Code
    • Tax Rounding Account

Rocky Mountain Lawson User Group

tax processing
Tax Processing
  • Additional tax entry flexibility
  • During invoice entry tax code can be:
    • brought over onto invoice from PO
    • added or changed

Rocky Mountain Lawson User Group

ma43 tax code
MA43 – Tax Code

Rocky Mountain Lawson User Group

auto match output ma126
Auto Match Output (MA126)
  • Auto match optionally includes matched invoices
  • Also retrofitted back to 8.0.3
    • 8.0.3 CTP#24064
    • Factsheet Article ID: 100652

Rocky Mountain Lawson User Group

reconciliation process
Reconciliation Process
  • After the initial match process, exceptions are available for review in the reconciliation queue.
  • Initial match took into consideration your organizations match rules in order to attempt the match.
  • Reconciliation is a forced match and only if messaging is being used are there match rules applied during the reconciliation process.
  • There is a reconciliation queue which lists all invoices which have not been matched.
  • From the reconciliation queue the INV button will open the invoice match screen and the DTL button will open the detail match screen.

Rocky Mountain Lawson User Group

invoice match
Invoice Match
  • Invoice Match from the reconciliation screen compares the invoices and the receipts at the header level.
  • From Reconciliation it is a forced match so if the invoice is greater than the receipt instead of match if the option is chargeback, the match will be completed and a chargeback created for the difference.
  • If chargeback is not the option, the match will be performed and the difference written to the account on the MA company or process level for invoice tolerance.
  • The entire receipt will be moved to a closed status.
  • This option should not be used if inventory items are tracked in Lawson’s I/C application.

Rocky Mountain Lawson User Group

detail level match
Detail Level Match
  • This screen displays the lines of the invoice to be matched to the lines of the receipt.
  • Select the invoice lines and the receipt lines. Use the select option.
  • Then choose the match option or chargeback option.
  • If messaging flags on Match Company are set to YES additional processing will occur.
  • If match is the option and messaging is used a message will be created to resolve the difference.
  • If match is the option and messaging is not used the invoice will be released and approved. The difference between the invoice and the receipt will booked to accounts based off the purchase order line type.
    • Inventory line item discrepancy will write to the item cost variance suspense.
    • Non-stock and special line item discrepancy will write to the accounts on the purchase order line.

Rocky Mountain Lawson User Group

after match
After Match
  • If your organization uses messages there are other actions that will take place after the reconciliation process.
  • It is possible to unmatch an invoice prior to the payment process or distribution posting.
  • It is also possible to reverse a payment on a matched invoice.
  • Invoices can be approved without receipts by using Match Invoice Approval.
  • Open receipts can be written off and the purchase order line closed.
  • Invoices paid and no receipts every recorded invoice line can be written off.

Rocky Mountain Lawson User Group

archive only option ma180
Archive Only Option (MA180)
  • HC driven requirement
  • Receipt archival
  • Original functionality: receipt write off
  • New functionality: no expense recognized if invoice is not present

Rocky Mountain Lawson User Group

ma180 archive only option
MA180 - Archive Only Option

Rocky Mountain Lawson User Group

reconciliation filter ma60
Reconciliation Filter (MA60)
  • Filter out invoices:
    • with Open PO Cost Messages
    • with no receivers
  • AP can focus on invoices they can take action on

Rocky Mountain Lawson User Group

slide41
Reconciliation Filter

Rocky Mountain Lawson User Group

buyers responsibility
Buyers Responsibility
  • Have the most updated cost in the Vendor Agreement (PO25)
    • Use PO536 to update Agreement pricing
  • Resolve cost and buyer messages in a timely manner
  • Review user requisitions with special and service items for cost and correct vendor
    • Use Buyer Worksheet (PO22) to verify cost
    • Determine if a requisition can accept entered cost for X and S type items (“Use Entered Cost” flag on RQ04)

Rocky Mountain Lawson User Group

ap responsibility
AP Responsibility
  • Verify PO Vendor and AP Vendor are the same
  • Verify correct entry of invoice

Invoice Total = Invoice Detail + Invoice AOC + PO AOC (+ Tax)

Rocky Mountain Lawson User Group

ap responsibility45
AP Responsibility
  • Promptly identify all invoice match problems and notify appropriate person(s)
    • System only creates Invoice Messages for pricing discrepancies
    • System messages do not always clearly identify all problems with a match
    • Utilize various inquiry screens to research matching problems. Such as PO64 and PO54
    • Document all identified invoice problems

Rocky Mountain Lawson User Group

ap responsibility46
AP Responsibility
  • Monitor the Reconciliation Queue
  • Consider use of Chargeback functionality

Rocky Mountain Lawson User Group

managing the reconciliation queue
Managing the Reconciliation Queue
  • Identify clear responsibilities and procedures for resolving common invoice problems types before live processing begins
  • Document invoice problems and steps taken to resolve
    • Hard copy documentation, Use of Invoice Comments and Reason Codes

Rocky Mountain Lawson User Group

managing the reconciliation queue48
Managing the Reconciliation Queue
  • Create an expeditor role to monitor and expedite resolution of problem invoices
    • Accounts Payable or Purchasing
  • Run MA126, Auto Matching regularly and review report
    • Create a separate Match Rule Group just for Auto match and test it
  • Create a Matching Improvement Team with members from Accounts Payable, Purchasing and Receiving and meet regularly

Rocky Mountain Lawson User Group

matching in the reconciliation queue
Matching in the Reconciliation Queue

Pros

  • Must match in Reconciliation Queue to fully use Chargeback functionality
  • Give AP more control over matching process and ability to expedite match of an invoice
  • Only way to match multiple invoices to one receipt in 8.0.2 without using the IM level match in the Match Rule Groups

Rocky Mountain Lawson User Group

matching in the reconciliation queue50
Matching in the Reconciliation Queue

Cons

  • Gives AP more control over matching process – can be dangerous tool if not used correctly
  • Requires a high degree of skill and understanding to use correctly – suggest limiting access to a few well trained staff members
  • Difficult to view and research detail lines in queue

Rocky Mountain Lawson User Group

using reconciliation messaging
Using Reconciliation Messaging

Setup recon messaging on Match Company form (MA01)

Pros

  • Creates a secondary check for some unresolved invoice matching problems before invoice is approved

Cons

  • Once an invoice is matched in the Queue, even though it creates a Reconciliation Message, the invoice cannot be changed.
  • Reconciliation Messages are sometimes created for invoice pricing problems that have already been resolved

Rocky Mountain Lawson User Group

invoice messaging
Invoice Messaging
  • Ability to create messages for buyer approval based on user defined criteria on the Match Company form.
  • Messages must be resolved to allow further processing on the invoice.
  • Trigger points have been created to create work units to be used with process flow files. (.flo)
  • Invoices with messages can not be selected for payment or posting.
    • Message Points
      • Invoice Entry
      • Invoice Reconciliation
      • Invoice Release

Rocky Mountain Lawson User Group

po cost messages
PO Cost Messages

Messages created when the Match invoice is entered and compared to the Purchase order.

  • Must create invoice line item details for Cost message creation.
  • Invoice must have a match Handling Code.
  • Must have DM rule level selected on Match Company Messaging Tab.
  • By comparing the invoice unit cost to the PO unit cost, the user is able to identify discrepancies between the PO and the invoice prior to match.
  • PO does not have to be received to create PO Cost messages.
  • The PO Cost Message must be resolved to have invoice available for match
  • Invoice is unreleased, unmatched and unapproved status.

Rocky Mountain Lawson User Group

reconciliation messages
Reconciliation Messages

These messages are created when a match is attempted in the reconciliation queue and is not within user defined tolerances.

  • Must create invoice line item details for cost message creation.
  • Invoice must have a match Handling Code.
  • Must have DM rule level selected on Match Company Messaging Tab.
  • These messages are for cost, quantity and no receipt line differences.
  • Invoice is released, matched and unapproved.

Rocky Mountain Lawson User Group

drop ship messages
Drop Ship Messages
  • Drop ship messages are created through the invoice release process. During release process the cost and quantity on the invoice is compared to the cost and quantity on the PO
  • Must create invoice line item details for message creation.
  • Invoice must have a drop ship Handling Code.
  • Must have DM rule level selected on Match Company Messaging Tab.
  • These messages are for cost and quantity line tolerances .
  • The tolerances can be for over or under variances.
  • Drop Ships have no receiving.
  • The invoice is released and unapproved.

Rocky Mountain Lawson User Group

service purchase order agreement messages
Service PurchaseOrder/Agreement Messages
  • Service Messages are created through the invoice release process. During the release process the cost on the invoice is compared to the cost on the PO or service agreement.
  • Must create invoice line item details for message creation.
  • Invoice must have a service Handling Code.
  • Must have DM rule level selected on Match Company Messaging Tab.
  • These messages are for unit cost only tolerances.
  • Service invoices have no receiving.
  • The invoice is released and unapproved.

Rocky Mountain Lawson User Group

slide57
Questions?

Rocky Mountain Lawson User Group

tim salaver enterprise solutions practice director heritage global solutions

Tim SalaverEnterprise Solutions Practice DirectorHeritage Global Solutions

[email protected]

www.heritageglobalsolutions.com

702-286-7464 Mobile

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