PO Workflow

in Accounts Payable

Rillion matches vendor invoices to internal or external purchase orders and goods receipts. Our Cascading PO Matching engine automatically matches hundreds of lines on a purchase order or invoice – saving you both time and money.

PO Workflow is a feature in Rillion’s AP Automation solution

What is PO matching?

So what is PO matching exactly? PO matching (purchase order matching) refers to the process of comparing information on an invoice with documents such as the purchase order, goods receipts, and/or a contract.

  • The goal of PO matching is to make sure that vendor payments are accurate and there is a correct accounting of costs. PO matching enables compliance to purchase contracts and helps to prevent fraud
  • It’s a key activity for a company’s accounts payable team that is complex, time-consuming, and resource-intensive when performed manually
  • Shifting to a digitized process of automated PO matching means the invocie is matched to the PO and goods receipt by the software

“With our contracts being matched to vendor invoices for over 300 locations, Rillion has reduced our manual workload and really optimized our AP operations.”

What is 3-way PO matching?

There are three different levels of PO matching: 2-way, 3-way and 4-way. These levels refer to how many supporting documents the invoice is matched against:

  • 2-way matching verifies the invoice against its corresponding PO
  • 3-way matching verifies the invoice against its corresponding PO and goods receipt
  • 4-way matching verifies the invoice against its corresponding PO, goods receipt, and acceptance or inspection document

3-way PO matching is the most common and the ideal choice of internal control. The three parameters which are compared between the documents in accounts payable three-way match include:

  • Name of the items
  • Quantity of the order
  • Price quoted per unit
Why should you use automated PO workflow

Benefits of Rillion Prime’s automated PO matching software

  • Automated 3-way PO matching – happens within minutes of receipt
  • Matches internal or external purchase orders and goods receipts
  • Match at the header or line level
  • Match POs and invoices with hundreds of lines
  • Exceptions are sent to approvers with all the information they need to reconcile
  • Provides a complete time-stamped audit trail, including messages

Why should you use automated PO matching?

Rillion’s PO matching software matches POs, invoices, and goods receipts efficiently. If an invoice matches a purchase order, it assumes the coding and approval from the order and can be sent directly to your ERP or accounting system for recording – without manual handling.

With business rules a procedure is implemented for invoices that do not match, and acceptable deviation levels are built in. Exceptions are routed to designated approvers in the approval workflow.

  • Matching of incoming invoices and purchase orders is done at the header level or line level
  • Matching can also be made to order numbers or delivery numbers and amounts
  • An invoice can contain items from several purchase orders, where a purchase order  can be matched to several different invoices, whether they are fully or only partially delivered
Matching of vendor invoices to purchase orders is done at the header or line level
Rillion’s integrated AP three-way match automation is innovative and efficient

How does Rillion’s automated PO matching work?

Rillion’s integrated AP three-way match automation is an innovative and efficient solution that minimizes workload and maximizes employee’s productivity. It matches invoices and purchase orders according to the variance rules you set.

  • For Non-PO invoices or where there is missing information, the invoice is sent to an approver
  • For PO invoices that contain exceptions as a result of the matching process, the invoice and all corresponding documents are sent to the appropriate person based on the roles you assign
  • Once delivered, the recipient views the package of information which includes an invoice image, a copy of the PO, the goods receipt information, and a description of the error

Intelligent 3 Way PO Matching is an optional module in Rillion’s AP Automation and Purchase to Pay software suites.

3 way matching refers to the accounts payable process of matching an invoice to the corresponding purchase order and goods receipt.

A PO invoice is an invoice that corresponds to a purchase order. PO invocies have to be matched to the corresponding purchase order and goods receipt.

A non PO invoice is a supplier invoice that has been received, but where there is no document (purchase order) confirming the goods/services that have been invoiced. It might be a phone order without written confirmation, a recurring subscription fee or any other ad hoc purchase. Non PO invoices are often referred to as “cost invoices”.

Invoice matching is the process where an invoice or invoice lines are compared with an order document, such as a purchase order (PO), a contract or a delivery note/goods receipt.

Rillion – AP automation for your peace of mind

Rillion provides accounts payable automation (AP Automation) to satisfied organizations in over 50 countries worldwide. With high ratings for ease of use and great support, 96% of Rillion customers feel that the platform fulfills expectations, and 95% consider Rillion to be a worthwhile investment.

Become a customer and see for yourself!

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