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PO Matching

Purchase order (PO) matching is a crucial part of the accounts payable process. It verifies that incoming invoices match what was ordered and received to prevent common errors like overpayments, discrepancies, and even fraud.

What is PO Matching?

Two-way purchase order PO matching compares a supplier’s with the purchase order to check for consistency in quantities, prices, and specifications. For extra control, invoices can also be matched to the goods received notes. This is known as three-way matching and easily checks that you got what you paid for.

Really easy to configure and use — has streamlined our processes around purchase order approval.

Martin Barnwell

Xero App Store review from verified Xero user

ApprovalMax ensures you can get all your purchase orders, bills and sales invoices approved by the right people and this makes your day to day spend management visible and in line with agreed business rules.

Lee Shaw

Xero App Store review from verified Xero user

Why do you need PO matching?

Reduce errors

Check that the goods or services received to match what was ordered
Prevent discrepancies in quantities, prices, and product specifications

Prevent fraud

Verify that invoices are legitimate and correspond to actual purchase orders
Reduce the risk of paying for unauthorised or fraudulent charges

Strengthen financial controls

Make accurate payments by confirming that invoice amounts align with purchase orders
Avoid overpayments and underpayments for overall financial accuracy

Better inventory management

Confirm that received goods are recorded accurately in inventory
Help maintain up-to-date and accurate inventory levels

Improve budget management

Check that spending aligns with budgeted amounts by verifying purchase order details
Provide better oversight and control over procurement expenditures

matching yours bill with purchase orders

Boost accountability

Keep a clear audit trail by documenting each step of the procurement and payment process
Increase transparency and accountability within the organisation

How does ApprovalMax’s automated PO matching work?

Connect your Xero or QuickBooks Online instance for easy PO matching

In just a few steps, ApprovalMax integrates with Xero and QuickBooks Online to pull purchase orders and invoices directly from these systems.

ApprovalMax Integration with Xero and Quickbooks

Use various matching scenarios and amount allocation

ApprovalMax supports ‘many-to-many’ PO matching. This means any number of bills can be matched to any number of purchase orders. If you assign an amount to a particular purchase order, you’ll then see the amount allocated to bills on approval and the amount allocated to approved bills as well as the remaining (not allocated) purchase order balance.

Restrict approval of unmatched bills

If the total amount of all bills linked to a particular purchase order exceeds its original amount, bill approval will be blocked. In this case, authorisation can only take place once all bills and purchase orders have been double-checked and matched correctly, or the issue has been fixed in some other way.

Automatically mark purchase orders as billed

Easily adjust PO matching settings to automatically mark a purchase order as billed when the last bill matched to it is approved and remaining PO balance is 0.

View the remaining balance for bills and POs

Want to know how much is left on a PO? With ApprovalMax, you can track and view the remaining balance, the difference between the PO amount and the allocated amounts of all matching bills to that PO. Remaining balances are automatically recalculated when a new matching bill is created, an existing one is removed, or the matching amount is changed.

ApprovalMax integrates with some of the world’s best platforms

Unlock the benefits of ApprovalMax with your accounting system of choice and connect to your favourite apps for even more capabilities.

ApprovalMax integration with Xero, Quickbooks Online and NetSuite

Learn more about accounts payable automation with ApprovalMax

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Budget checking

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FAQ

PO matching software

What is a PO invoice in accounts payable?

A PO invoice is an invoice with a purchase order attached to it. Such invoices are generated after a purchase order is approved. When PO invoices are received by the AP department, they are matched against the corresponding purchase order. Non-PO invoices, in contrast, do not have corresponding purchase orders.

What is two-way PO matching?

Two-way matching is the process of checking invoices against approved purchase orders. It is also known as PO matching and used to confirm that there are no errors or discrepancies in the invoices before the payment is made.

Why should you use PO matching?

PO matching should be used to ensure that the goods or services received match what was ordered, preventing discrepancies and ensuring accuracy in procurement. It also helps maintain financial control by verifying that the prices and quantities invoiced correspond with the purchase order, avoiding overpayments or fraudulent charges. PO matching boosts efficiency and accountability across the whole organisation by making it easier to verify details and support better inventory and budget management.

Can I match bills to purchase orders in the mobile app?

Yes, ApprovalMax mobile app supports the PO matching functionality.

Which purchase orders are available for matching?

Purchase orders can be matched to invoices if they meet the following criteria: 1) PO and bill have the same Supplier and Currency, 2) The PO is not marked as ‘Billed’, 3) The PO date does not exceed the invoice date.

PO Matching

What our clients say about ApprovalMax

Connect your Xero or QuickBooks Online instance for easy PO matching

Use various matching scenarios and amount allocation

Restrict approval of unmatched bills

Automatically mark purchase orders as billed

View the remaining balance for bills and POs

PO matching software

What is a PO invoice in accounts payable?

What is two-way PO matching?

Why should you use PO matching?

Can I match bills to purchase orders in the mobile app?

Which purchase orders are available for matching?

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