PO Matching Rules

PO Matching Rules will be set at Purchase Order (PO) level. PO Matching Rules are used to validate AP Invoices before making the payment to suppliers.

PO Matching rules can be set at five different levels to default them on to purchase order. Once matching rule is defaulted on to PO we have the option to override them as needed.

In the list below, a setting at any level will override the settings above it.

1. Oracle Purchasing Options
a. Navigate to: Setup > Organizations > Purchasing Options
b. Select Default Alternative Region

2. Supplier Information
a. Navigate to: Supply Base > Suppliers
b. Query on specific supplier
c. Click on Open
d. Select Receiving Alternative Region

3. Line Types
a. Navigate to: Setup > Purchasing > Line Types
b. In the Receipt Required field: Yes = 3-way, No = 2-way

4. Items
a. Navigate to: Items > Master Items
b. Query on specific item
c. Select Purchasing Alternative Region
d. In the Invoice Matching section: Yes = 3-way, No = 2-way

5. Purchase Order Shipments
a. Navigate to: Purchase Orders > Purchase Orders
b. Enter (header and) line information
c. Click on Shipments button
d. Select More Alternative Region

In general Oracle ERP doesn’t let you make payments without validating the invoice. (There is a workaround to turn this off). Usually no organization want to turn-off matching rules because they want to ensure the payment is going out for the right reason.

2-Way:

In 2- way, we will compare two documents PO and Invoice.

Invoice Price < = Purchase Order Price

Invoice Quantity < = Purchase Order Quantity

3-Way:

In 3-Way you will compare 3 documents i.e PO+reciept+Invoice.

3-way matching verifies that the receipt and invoice information match with the quantity tolerances defined:

Invoice Price < = Purchase Order Price

Invoice Quantity < = Purchase Order Quantity

Invoice Quantity < = Received Quantity

4-Way:

In 4-Way you will compare 4 documents i.e PO+Receipt+Invoice+Inspection.
4-way matching verifies that acceptance documents and invoice information match within the quantity tolerances defined

Invoice Price < = Purchase Order Price

Invoice Quantity < = Purchase Order Quantity

Invoice Quantity < = Received Quantity

Invoice Quantity < = Accepted Quantity

Conceptually : Record to Reporting Cycle – R2R

Record to report or R2R is the management process for providing strategic, financial and operational feedback to understand how a business is performing.

This process involves collecting, transforming and delivering relevant, timely and accurate information to all stakeholders inside and outside the organization, to provide insight into how their expectations have been met.

It covers the steps involved in preparing and reporting the overall accounts which are typically stored in a general or nominal ledger and managed by a comptroller. The detailed steps involved are:

• data extraction
• data collection
• data validation
• data transformation (generation of voucher)
• voucher posting (to general ledger)
• storing vouchers in de-normalized and compressed format
• generating analysis account trial balance or consolidated analysis account trial balance
• generating user-defined financial and management reports

In ERP systems , This is part  month end  process in which basically user will close all the periods  and import all the journals in GL from other modules
(Payable, Receivable, Fixed Assets etc.). Then run all the month end GL reports like Trial Balance, Account Analysis  etc.

Following are broader division of activity involved in Record to Report Cycle

Reconciliations

• Intercompany
• Multiple systems
• Bank
• Subsidiary to main set of books
• Customer
• Vendor

General Accounting

• Journal Entries
• Intercompany accounting
• Book closures
• Trial Balance preparation
• Accruals
• Consolidations
• Cost Accounting

Record to Report process might seem simple but it require considerable efforts. It is the only process scrutinized by outside auditors who draw conclusions about controls in place during financial close and reporting cycle.

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Conceptually : Record to Reporting Cycle – R2R

Record to report or R2R is the management process for providing strategic, financial and operational feedback to understand how a business is performing.

This process involves collecting, transforming and delivering relevant, timely and accurate information to all stakeholders inside and outside the organization, to provide insight into how their expectations have been met.

It covers the steps involved in preparing and reporting the overall accounts which are typically stored in a general or nominal ledger and managed by a comptroller. The detailed steps involved are:

• data extraction
• data collection
• data validation
• data transformation (generation of voucher)
• voucher posting (to general ledger)
• storing vouchers in de-normalized and compressed format
• generating analysis account trial balance or consolidated analysis account trial balance
• generating user-defined financial and management reports

In ERP systems , This is part  month end  process in which basically user will close all the periods  and import all the journals in GL from other modules
(Payable, Receivable, Fixed Assets etc.). Then run all the month end GL reports like Trial Balance, Account Analysis  etc.

Following are broader division of activity involved in Record to Report Cycle

Reconciliations

• Intercompany
• Multiple systems
• Bank
• Subsidiary to main set of books
• Customer
• Vendor

General Accounting

• Journal Entries
• Intercompany accounting
• Book closures
• Trial Balance preparation
• Accruals
• Consolidations
• Cost Accounting

Record to Report process might seem simple but it require considerable efforts. It is the only process scrutinized by outside auditors who draw conclusions about controls in place during financial close and reporting cycle.

References:

https://knoworacle.wordpress.com/2015/06/11/conceptually-record-to-reporting-cycle-r2r/