PO Matching Cards - Complete Guide

Purchase Order (PO) Matching Cards - Complete Guide

Status: Covers 15 PO comparison cards with detailed calculations

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The PO comparison cards on this page go in the And group of the Workflow Builder — they compare invoice data against the matched purchase order before the Then actions run:

PO comparison cards are added to the And group via Add Card.

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📌 Version Information

Most Evolved Card: CONDITION_DOC_TO_PO_UNIT_PRICE (5 versions, v5 latest) Other Complex Cards: CONDITION_OC_TO_PO_ITEMS (v4), CONDITION_LESS_THAN_TOLERANCE_AS_VALUE_OF_ORDERED_QUANTITY (v4)

Key Patterns:

• v2 → v3+: Addition of tolerance parameters for flexible matching

• v3 → v4: Addition of comparison mode parameters

• v4 → v5: Enhanced tolerance with multiple units (%, EUR, $, etc.)

📖 Complete Version History | Card Version Database

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Understanding PO Matching

When you receive an invoice, it should match the Purchase Order (PO) placed earlier. PO matching cards automatically check if invoice data matches PO data.

The Big Picture:

PO Placed     Invoice Arrives     PO Matching     Decision
(€100)    →   (€103)          →   (Check if       → Approve/Reject
Qty: 100      Qty: 100            within tolerance)

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1. Purchase Order Full Match

Purpose

Checks if the entire invoice matches the PO perfectly or within tolerance

When to Use

• Before approving an invoice

• As a preliminary quality check

• To identify problems early

How It Works

System compares:

• Invoice quantities vs PO quantities

• Invoice prices vs PO prices

• Invoice items vs PO items

• Invoice total vs PO total

Result

• TRUE (Full Match): Everything matches, proceed

• FALSE (Mismatch): Something doesn't match, needs review

Example

PO:
- Item ABC: Qty 100, Unit Price €50 = €5000
- Item XYZ: Qty 50, Unit Price €20 = €1000
- Total: €6000

Invoice:
- Item ABC: Qty 100, Unit Price €50 = €5000
- Item XYZ: Qty 50, Unit Price €20 = €1000
- Total: €6000

Result: ✅ FULL MATCH

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2. Unit Price Comparison (Document vs PO)

Purpose

Compares the unit price on the invoice with the unit price on the PO

Parameters

• Unit Price Tolerance: Allow variance up to this amount

• Tolerance Type: Percentage (%) or Absolute (€/$)

• Operator: Is Equal to, Is Greater than, Is Less than, etc.

How It Works (Percentage Tolerance)

Formula:

Variance % = |(Invoice Price - PO Price)| / PO Price × 100

Check: Is Variance % ≤ Tolerance %?

Step-by-Step Example:

Step 1: Get prices
  PO Unit Price: €100.00
  Invoice Unit Price: €103.00

Step 2: Calculate difference
  Difference = |€103.00 - €100.00| = €3.00

Step 3: Calculate percentage
  Percentage = (€3.00 / €100.00) × 100 = 3%

Step 4: Check tolerance (5% allowed)
  Is 3% ≤ 5%? YES ✅

Result: PASS - Within tolerance

Real-World Examples

Example 1: Small Increase (Accepted)

PO Price: €50.00
Invoice Price: €51.50
Tolerance: ±3%

Calculation:
  Variance = |(€51.50 - €50.00)| / €50.00 × 100
  Variance = €1.50 / €50.00 × 100 = 3%

Is 3% ≤ 3%? YES ✅ ACCEPT

Example 2: Large Increase (Rejected)

PO Price: €50.00
Invoice Price: €55.00
Tolerance: ±3%

Calculation:
  Variance = |(€55.00 - €50.00)| / €50.00 × 100
  Variance = €5.00 / €50.00 × 100 = 10%

Is 10% ≤ 3%? NO ❌ REJECT - NEEDS REVIEW

Example 3: Discount (Also Checked)

PO Price: €100.00
Invoice Price: €97.00
Tolerance: ±5%

Calculation:
  Variance = |(€97.00 - €100.00)| / €100.00 × 100
  Variance = €3.00 / €100.00 × 100 = 3%

Is 3% ≤ 5%? YES ✅ ACCEPT (Discount is within tolerance)

Example 4: Absolute Value Tolerance

PO Price: €10.00
Invoice Price: €10.50
Tolerance: ±€1.00 (absolute, not %)

Calculation:
  Variance = |€10.50 - €10.00| = €0.50

Is €0.50 ≤ €1.00? YES ✅ ACCEPT

What to Do With Results

If PASS ✅:

• Continue to next check

• Or approve invoice

• Or proceed with export

If FAIL ❌:

• Flag for manual review

• Ask supplier for explanation

• Contact procurement team

• Approve with note if acceptable

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3. Quantity Comparison

Purpose

Checks if the quantity ordered matches the quantity invoiced

Parameters

• Tolerance: Amount or % allowed to differ

• Operator: Equals, Greater than, Less than

• Quantity Type: Ordered, Received, Open

Calculation Example

Percentage Tolerance:

Formula:
  Quantity Variance % = |(Invoice Qty - PO Qty)| / PO Qty × 100

Example:
  PO Quantity: 100 units
  Invoice Quantity: 103 units
  Tolerance: ±5%

  Variance = |(103 - 100)| / 100 × 100
  Variance = 3 / 100 × 100 = 3%

  Is 3% ≤ 5%? YES ✅ ACCEPT

Absolute Tolerance:

Formula:
  Quantity Variance = |Invoice Qty - PO Qty|

Example:
  PO Quantity: 100 units
  Invoice Quantity: 102 units
  Tolerance: ±5 units

  Variance = |102 - 100| = 2 units

  Is 2 units ≤ 5 units? YES ✅ ACCEPT

Real-World Scenarios

Over-Delivery (More than Ordered)

Ordered: 100 units
Invoiced: 110 units
Tolerance: ±5%

Variance = |(110-100)|/100 × 100 = 10%

Is 10% ≤ 5%? NO ❌

Decision: Contact supplier - more delivered than ordered
Possible reason: Error by supplier, partial shipment already received

Under-Delivery (Less than Ordered)

Ordered: 100 units
Invoiced: 95 units
Tolerance: ±5%

Variance = |(95-100)|/100 × 100 = 5%

Is 5% ≤ 5%? YES ✅

Decision: Accept - within tolerance
Possible reason: Partial shipment, rest to follow

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4. Combined Price of Quantity Difference

Purpose

When quantity differs, calculates if the total price difference is acceptable

Why This Matters

Scenario: You ordered 100 units but received 110
- Quantity is 10% over (bad)
- BUT: You're only charged for 10% extra
- Combined effect might be acceptable

Calculation

Formula:

Combined Variance = Quantity Variance × Price Variance

If both are within tolerance, combined is usually acceptable

Example:

PO:
- Unit Price: €100
- Quantity: 100
- Total: €10,000

Invoice:
- Unit Price: €102 (2% higher)
- Quantity: 105 (5% higher)
- Total: €10,710

Analysis:
- Price variance: 2% ✅
- Quantity variance: 5% ✅
- Combined effect: 1.02 × 1.05 = 1.071 = 7.1% total increase

Is combined variance acceptable? Usually YES ✅

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5. Item ID / Supplier Item Number Comparison

Purpose

Checks if the items in the invoice match the items in the PO

How It Works

Exact Match (Simplest):

PO Item ID: ABC-123
Invoice Item ID: ABC-123
Result: ✅ MATCH

Supplier Item Number (More Common):

PO Item: ABC-123 (Our internal code)
Supplier Item: SUPP-456 (Their code for same item)
System matches these as same item
Result: ✅ MATCH

Scenario: What If It Doesn't Match?

PO Item: ABC-123 (Copper Wire, 2mm)
Invoice Item: ABC-124 (Steel Wire, 2mm)

Result: ❌ NO MATCH

Actions:
1. Is this a substitution? Check with procurement
2. Is this an error? Contact supplier
3. Is the description similar? Verify manually

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6. Order Type Verification

Purpose

Verifies the purchase order type is correct

Order Types

• Standard Order: Regular purchase

• Rush Order: Urgent, may have premium

• Frame Agreement: Long-term contract

• Blanket Order: Open-ended contract

• Consignment: You don't pay until used

Check Example

PO Order Type: Standard Order
Invoice Order Type: Standard Order
Result: ✅ MATCH

If mismatch: Could affect terms, payment, pricing

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7. Delivery Date Verification

Purpose

Checks if delivery date matches the promised date on the PO

Calculation

Late Delivery:

Formula:
  Days Late = Invoice Delivery Date - PO Promised Date

Example:
  PO Promised: 2025-10-15
  Actual Delivery: 2025-10-22
  Days Late = 7 days

If tolerance is ±3 days:
  Is 7 ≤ 3? NO ❌ LATE

Early Delivery:

Formula:
  Days Early = PO Promised Date - Invoice Delivery Date

Example:
  PO Promised: 2025-10-15
  Actual Delivery: 2025-10-10
  Days Early = 5 days

Early delivery is usually OK ✅
Unless you need it at specific time

Tolerance Settings

±3 days: Allow 3 days late or early
±5 days: Allow up to 5 days variance
0 days: Must match exactly

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8. Charge Verification (Taxes, Shipping, Etc.)

Purpose

Checks if additional charges (taxes, shipping, handling) match PO

Common Charges

- Shipping: €50
- Handling: €10
- Packaging: €5
- Insurance: €15
- Taxes: €300

Calculation

Example: Shipping Charge Check

PO Shipping: €50.00
Invoice Shipping: €51.00
Tolerance: ±3%

Variance = |€51.00 - €50.00| / €50.00 × 100 = 2%

Is 2% ≤ 3%? YES ✅ ACCEPT

Example: Multiple Charges

PO Total Charges:
  - Shipping: €50
  - Taxes: €300
  - Handling: €10
  Total: €360

Invoice Total Charges:
  - Shipping: €50
  - Taxes: €312 (11% tax)
  - Handling: €10
  Total: €372

Difference: €12
Check if within tolerance ✅ or ❌

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9. Tax Verification

Purpose

Verifies tax amounts are calculated correctly

Calculation

Formula:

Tax Amount = Subtotal × Tax Rate

Example:
  Subtotal: €1000
  Tax Rate: 19%
  Expected Tax: €1000 × 0.19 = €190

Invoice Tax: €190
Match? YES ✅

Common Issues:

1. Tax rate changed (region-based)
2. Tax applied to wrong amount (before/after discounts)
3. Multiple tax rates (some items 7%, others 19%)
4. Tax exempt items (0% tax)

Example: Multi-Rate Taxation

Item A: €100 @ 19% tax = €119
Item B: €100 @ 7% tax = €107
Item C: €100 @ 0% tax = €100
Total: €326

Invoice shows €325 (€1 error)

Check: Within tolerance or needs attention?

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10. Facility/Cost Center Matching

Purpose

Ensures the invoice is for the correct facility/cost center

Example

PO is for:
- Facility: Berlin Plant
- Cost Center: CC-2025

Invoice should have:
- Facility: Berlin Plant ✅
- Cost Center: CC-2025 ✅

If different facility: May need different approval

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11. Supplier Status Validation

Purpose

Checks if the supplier is still approved/active

Status Types

✅ ACTIVE: Approved, can do business
⚠️ ON HOLD: Temporarily blocked
❌ INACTIVE: No longer doing business
⚠️ CONDITIONAL: Only for specific items

Check Example

Supplier: ABC Corp
Status in Database: ACTIVE
Status when creating PO: ACTIVE
Status when invoice arrives: INACTIVE

Alert: Supplier status changed! Investigate why.

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Which Tolerance Should I Use?

Strict Tolerances (Lower Risk, More Manual Work)

Use for:
- High-value items
- Items where exactness matters
- Regulated industries

Settings:
- Unit Price: ±1%
- Quantity: ±1%
- Delivery Date: ±1 day
- Charges: ±1%

Moderate Tolerances (Balanced)

Use for:
- Most business transactions
- Standard items
- Normal purchasing

Settings:
- Unit Price: ±3-5%
- Quantity: ±3-5%
- Delivery Date: ±3 days
- Charges: ±5%

Loose Tolerances (Higher Risk, Less Manual Work)

Use for:
- Low-value items
- Bulk purchases
- Supplier agreements with flexibility

Settings:
- Unit Price: ±10%
- Quantity: ±10%
- Delivery Date: ±7 days
- Charges: ±10%

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PO Matching Workflow Example

Invoice Arrives
    ↓
Condition: "Is amount > €5000?" → YES
    ↓
Check: Full Match? → NO (10% price difference)
    ↓
Check: Unit Price within 5%? → NO (12% difference)
    ↓
Check: Quantity within 5%? → YES (2% difference)
    ↓
Decision: FAIL - Price variance too high
    ↓
Flag for: Manual review / Buyer approval
    ↓
Wait for: Buyer comment
    ↓
If Approved: Continue to Export
If Rejected: Return to Supplier

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Troubleshooting PO Matching

"PO Not Found"

Cause: Invoice PO number doesn't exist in system
Fix:
1. Verify PO number spelling
2. Check if PO was created
3. Verify PO is in correct organization
4. Ask supplier for PO reference

"Items Don't Match"

Cause: Invoice items are different from PO items
Possible Reasons:
1. Substitution approved by procurement
2. Different item numbers for same item
3. Error by supplier
Fix: Contact procurement or supplier

"Price Higher Than PO"

Cause: Invoice price > PO price
Possible Reasons:
1. Price increase approved
2. Supplier error
3. Currency difference
4. Additional services included
Fix: Verify with procurement

"Delivery Date Wrong"

Cause: Invoice dated after promised delivery
Possible Reasons:
1. Shipment was delayed
2. Receiving date different from invoice date
3. Partial shipment
Fix: Check shipping documents or contact supplier

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Summary Table

Card	What It Checks	Main Calculation	Common Tolerance
Full Match	Everything	All checks	Varies
Unit Price	Price per unit	% or € difference	±3-5%
Quantity	Amount ordered	% or unit difference	±3-5%
Combined Price	Total with qty change	Qty × Price	±5-10%
Item ID	Right items	String match	Exact
Order Type	Type of purchase	String match	Exact
Delivery Date	When arrived	Day difference	±3 days
Charges	Extra fees	% or € difference	±5%
Tax	Tax amount	Tax % calculation	±1%
Facility	Cost center	String match	Exact
Supplier	Approved?	Status check	Active only

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Related Documentation

• See "Invoice Validation" guide for complete workflow

• See "Tolerance Settings" for recommended values by industry

• See "Exception Handling" for what to do with failures

• Contact your procurement team for specific tolerance policies