The Intricacies of PeopleSoft Invoice Matching

The Intricacies of PeopleSoft Invoice Matching

In our recent newsletter, two of our senior principal consultants wrote a quick bit about the differences in PeopleSoft invoice matching functionality from 8.9 to 9.0.  We get asked about this a lot, and for most users, the differences can be somewhat arcane.  Because of this, I’d like to share the article.

Differences in PeopleSoft Invoice Matching from 8.9 to 9.0: A High-level View

by April Black and Jack Kochie, Sr. Principal Consultants

From PeopleSoft 8.9 to 9.0, some of the invoice matching and processing rules changed significantly, and we find many of our clients don’t know about the changes in any sort of detail.  At a high-level, here are the biggest-hitting changes:

  • 9.0 includes all features of prior releases
  • Expanded document association included (e.g. receipt selection)
  • Expanded rules engine (contexts: summary, tolerance, global), which provide:
    • More flexibility
    • Flow control (allows matching – i.e. check all or check first)
    • Summary rules
    • Rule tolerances
  • Auto-matching with debit memos
  • Configurable matching workbench
  • Expanded workflow

As for what we get asked about steadily, it’s the intricacies of the rules engine.

Specifically, the flow control and the summary rules allow you to set a dollar threshold per invoice where the processing of the match exception difference is not cost effective to handle manually based upon the invoice charge and the purchase order comparison.  In other words, the small dollar exceptions are processed and matched, which means the remaining match exceptions are material and warrant the time required to contact vendors and manage the corrections.  The invoice differences that match within the tolerance are scheduled for payment, which improves the opportunity for payment discounts and timely payments.  In the end, overall process flow is improved and negative impact to the business is safeguarded.

– Also read: Kabbage VS Ondeck Review.

Matching tolerances, flow, and action can be defined solely at the rule level or at a more granular level as in the past (e.g. by item category).  For example, if a contract with the supplier states freight is not charged on an invoice, the rule specific to the freight charges can be used and the flow defined to stop after this rule is triggered because freight was charged on the invoice.  Additional exceptions are not generated and the supplier is contacted to send a corrected invoice.  This means the matching configuration can be defined to focus on the invoice processing differences for your organization and business processes.

While the 9.0 enhancements are powerful, the new matching will require some time to review and evaluate the rule combinations to meet your business processing needs.  Doing so may reduce the number of exceptions generated for processing and generate exceptions for the material differences between invoices purchase orders and receipts.  The groundwork to get 9.0 matching running and optimized for your business might be intricate, but it’s an investment that pays for itself very quickly.