What is the Best Practice - 3 Way Match, Change Purchase Price at last minute

Question

Community,we are looking for the best practice for below scenarioWhen supplier invoicing, if any discrepancies between supplier invoice and PO, our AP team will change the purchase price direct on the purchase order line in order to meet the amount on supplier invoice. 	unbalanced amount which is matched by auto job will generate the unbalanced amount, but AP team we will remove the current match and redo the matching, the unbalanced problem will be temporarily fixed.	then AP team will do final posting.Above operation will result in huge variance at GL side.Would like to hear from you, what is the best practice for this issue? Thank you.

Adam Bereda · Answer

First of all, I am not sure if it should be AP team matching invoice to receipt. In our organization in case of discrepancies after automated PO matching invoice is sent to buyer (from PO) - within posting proposal. It is buyer to investigate if the discrepancy relates to quantity (or units) difference or price variations and can instruct AP if invoice is to be accepted or refused.

Any invoice manual matching is subject of approval in posting proposal, and all variances are acknowledged/approved by stakeholders, including buyer and budget owner.

Finally AP team is making final posting checking the tax applied and making sure bank account indicated on invoice is matching our records.

We are dealing with non-inventory parts only, so every invoice is affecting cost of the period directly (as we are project-driven organization), but it should be the case for inventory parts as well - for manufacturing, correct price used in calculations of product value and distinction between quantity and price variance is even more important.

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