Xero-connected
bill to purchase
order matching

ApprovalMax For Xero Demo

Matching bills and purchase orders

ApprovalMax facilitates the matching of supplier invoices - or technically, the bills pulled from Xero - and the related purchase orders which have been created and authorised in ApprovalMax.

There are two possible scenarios for bill-to-PO matching in ApprovalMax: either multiple bills to a single purchase order, or one bill to multiple purchase orders. During the matching procedure, proper checks and validations take place.

Bill to purchase order matching is governed by a set of configurable controls that determine how matching and approvals can be performed. This includes ruling out the approval of bills that have not been matched to purchase orders or setting a limit on how much bills are allowed to overrun the matched purchase order amount.

This is how it works

Bills "Awaiting Approval"

ApprovalMax automatically picks up all bills in the "Awaiting Approval" status from Xero. Once this has happened, it is possible to start the matching.

Bill-to-PO matching

During this procedure, one or multiple bills as well as a list of purchase orders from the same supplier that have not yet been billed are shown side-by-side. These are the purchase orders that can be matched with the bill(s) at hand. ApprovalMax supports two scenarios for linking bills and purchase orders: either multiple bills to a single purchase order, or one bill to multiple purchase orders.

Additional controls: 4-way matching

ApprovalMax allows to attach any document as a comment to bills and purchase orders. This extends bill-to- PO matching with the option of matching bills to purchase orders to proof of delivery and (if required) to proof of acceptance, which is a great enhancement to spend control and finance planning.

Bill authorisation

When a bill has been matched to the correct purchase order(s) and its coding has been reviewed and validated, the bill authorisation process will start.

Pushing bills to Xero

After their matching, review and authorisation has been completed, bills are synched to Xero in the "Awaiting Payment" status with a full audit trail report attached to them.

Supported matching scenarios

Manual matching of bills and purchase orders

Manual matching links a bill in the "Not Fully Billed" status with the related purchase order(s). For this, ApprovalMax shows a list of all purchase orders filtered by parameters that must be the same in both the purchase orders and bills at hand.

Using purchase orders as a budget

This scenario allows to control the total spend with a particular supplier: when a bill is matched to a purchase order, the remaining balance for that particular purchase order (which stands for a certain budget amount) will be calculated - taking into account any bills that have previously been allocated to this purchase order. If the current bill amount exceeds the remaining balance of the purchase order (i.e. budget), it can be matched to multiple other purchase orders in the system.

Why use ApprovalMax for bill-to-PO matching

Supplier invoices are aligned with the purchases that have been authorised

Improved accounting data quality with proper coding from the original purchase order(s)

Mandating that all bills have corresponding approved purchase orders cuts unauthorised spending

Forecasting future spending by accounting for still unpaid portions of authorised purchase orders is more reliable

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FAQ

Is it possible to match bulk purchase orders?+

Yes, bulk purchase orders can be matched to multiple bills.

How do I use bill-to-PO matching as a budgeting tool?+

For controlling a budget, you can set up a non-supplier purchase order for a specific department and match all respective bills to that purchase order.

What kind of document can I use as proof of delivery and inspection?+

You can attach delivery notes, acceptance certificates, photos of delivered goods - whatever works in your case.

Does ApprovalMax support automated matching?+

Right now, matching is performed manually but automated matching will be supported in the next releases.

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