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Handle Match Failures ​

When the matching engine detects variances between the Purchase Order, Goods Receipt Note, and Invoice, it routes the invoice for review. This page explains how to identify the problem, resolve it, and move the invoice forward.

Prerequisites ​

  • You have the Accounts Manager role, or you are assigned as a reviewer for the invoice
  • The invoice has a Match Decision of "Hold for Review" or "Reject"

Step-by-Step: Reviewing a Failed Match ​

  1. Navigate to the IPU Dashboard or Invoice Processing Unit list view.
  2. Filter for invoices with status "Pending Manual Review" or "Match Failed - Manual Entry Required."
  3. Open the IPU record. The Match Score and Match Decision are visible in the header area.
  4. Click the Match Result link to open the detailed comparison.

Understanding the Match Result ​

The Match Result record shows:

  • Overall Score — the combined match percentage
  • Component Scores — separate scores for quantity, price, and value matching
  • Line Results — a child table showing the line-by-line comparison with variance amounts

For each line with a variance, the Line Results table shows:

  • The PO quantity, GRN quantity, and Invoice quantity side by side
  • The PO rate vs. Invoice rate
  • The calculated variance amount and percentage
  • The line match status (Matched, Variance Within Tolerance, Variance Exceeds Tolerance)

Common Variance Types and Resolution ​

Quantity Variance ​

Invoice bills for more than what was received. For example: PO 100 units, GRN 95 units, Invoice 100 units.

Resolution options:

  • Ask the supplier to revise the invoice to match the received quantity (95 units)
  • Accept the variance if a short receipt is expected to be fulfilled later (partial delivery pending)
  • Reject the invoice and request a credit note for the over-billed quantity

Price Variance ​

Invoice rate differs from the PO rate. For example: PO rate ₹50/unit, Invoice rate ₹52/unit.

Resolution options:

  • Ask the supplier if there is a contractual basis for the price change (e.g., agreed escalation clause)
  • Accept the variance if the price increase is within your organization's approval authority
  • Reject the invoice and request the supplier reissue at the agreed PO rate

Value Variance ​

The invoice total does not match expectations even though lines appear correct. This can occur due to rounding differences, tax calculation discrepancies, or additional charges.

Resolution options:

  • Check the tax calculation — verify the GST rates and amounts match between the PO and the invoice
  • Check for additional charges that may not be on the PO (freight, handling, etc.)
  • Accept minor rounding differences if the total variance is within your organization's rounding tolerance

Missing PO Reference ​

The invoice does not reference a Purchase Order.

Resolution options:

  • Assign a PO manually by linking the correct Purchase Order on the IPU record
  • Process as a Non-PO invoice if no PO applies (e.g., utility bills, recurring charges)
  • Reject the invoice if your organization requires a PO for all purchases

Step-by-Step: Resolving and Approving ​

  1. After reviewing the variance, decide on the appropriate action.
  2. If you choose to approve with variance: add a comment explaining the reason for acceptance, then approve the invoice. The variance is recorded in the audit trail.
  3. If you choose to reject: add a rejection reason. The invoice status changes to "Rejected" and the supplier may be notified.
  4. If you choose to escalate: the invoice moves to the next approval level based on your organization's approval rules.

TIP

If the variance is due to a data extraction error (e.g., OCR misread a quantity), you can correct the IPU record's line items and re-run matching rather than rejecting the invoice.

After Resolution ​

  • Approved invoices move to Purchase Invoice creation. Budget validation occurs at that stage if budget control is enabled.
  • Rejected invoices remain in the system with a full audit trail. The supplier can submit a corrected invoice which creates a new intake record.
  • All actions — approval, rejection, escalation, comments — are recorded in the IPU Approval History and Audit Trail for compliance purposes.

PayInvoice Next — P2P Documentation v1.0.0-beta

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