Order matching
If your organization uses the Procurement and Invoice Processing modules, the accounts payable department has the option to match invoices to purchase orders. Matching creates a link between the invoice and the order in Spend Cloud, allowing you to apply the coding specified in the order to the invoice. Depending on the supplier's settings, you can also automatically approve an invoice line if the invoice amount matches the order amount.
When coding an invoice, you can choose to match it to an order. In the coding overview, the 'Status' indicates whether an invoice can be matched, with statuses 'Added, matched' represented by a linking icon and 'Added, to match' represented by a shopping cart icon.
The linking icon indicates that an order number has been recognized on the invoice, enabling automatic matching if the amounts match. The shopping cart icon indicates that, based on text recognition, there are multiple orders available for the identified relation.
Clicking on the invoice or the pencil icon on the right side of the line in the coding overview takes you to the coding page, where you find the 'Match Orders' button leading to the matching screen.
On the left side of the screen, you see all available orders registered in Spend Cloud with the connected supplier. If Spend Cloud recognizes an order number on the invoice, the corresponding order is automatically selected. If no order number is recognized, you must manually search for and select the desired order(s).
An order is considered complete when the full order amount is matched. Spend Cloud records this and ensures the order no longer appears in the 'Available Orders' list.
Completing orders is displayed on the right side of the matching screen. If the order amount is fully matched, Spend Cloud automatically checks 'Complete Order(s)' under the header. Clicking 'Match' at this point sets the order to complete.
The order status changes to 'Complete' only when the invoice is exported to the financial package. Before export, a match can still be updated, and for this reason, the order is marked as 'Complete' only after export.
There is also a 'Matching with Procurement' workshop available (Dutch spoken webinar) for a deeper understanding of how to improve invoice matching.
Matching full Orders
On the right side of the matching screen, you can check if the invoice amount matches the total to be matched. If it does, the 'Difference' field shows 0.00. Clicking 'Match' at the bottom of the screen creates an invoice line based on the order.
By default, Spend Cloud checks if all order lines have the same coding and groups them into one invoice line. If the coding differs, multiple invoice lines are created. By unchecking 'Group order lines with the same coding' in the matching screen, you can generate a separate invoice line for each order line. If merging coding is not desired, this can be adjusted per administration via 'Application Management / General / Administrations' by disabling the setting 'Group order lines with the same coding.'
You can automatically approve an invoice if there is no difference between the invoice and order amount or if the difference is within the set tolerance. If this option is enabled for the supplier, a green message above the created invoice line indicates automatic approval. By automatically approving a bill, it bypasses the need for approval by an authorized person, expediting the processing of the invoice.
For automatic approval, the invoice must fall within the tolerance and be set up for automatic approval at the supplier. Both options can be configured in 'Application Management / Purchasing / Suppliers.' Additionally, automatic approval is possible only when the order is registered as 'Delivered.' This status is achieved when the order receipt is recorded or when the supplier specifies that no receipts (up to a threshold amount) need to be registered.
Automatically Matching PDF Invoices
Automatically matching PDF invoices saves manual effort and time in invoice processing. Spend Cloud uses its matching system to propose a match based on the situation. The system checks if the received invoice matches the delivered order amount. If not, it looks at the outstanding order amount. If that matches, a match can still be made.
Order matching during coding
When Spend Cloud recognizes an order number and supplier on a PDF invoice, it attempts to make an automatic match. A perfect match occurs when the invoice amount equals the sum of the outstanding and delivered amounts of the order lines.
An example:
Orderline amount | Already received booked amount | Previously matched amount | Outstanding amount | Outstanding and delivered amount = to match amount | |
Orderline 1 | €1000,- | €500,- | €200,- | €800,- | €300,- |
Orderline 2 | €1000,- | €600,- | €400,- | €600,- | €200,- |
Total | €2000,- | €1100,- | €600,- | €1400,- | €500,- |
When there is an invoice with an amount of €500 where an order number has been recognised on the invoice, Spend Cloud will make a perfect automatic match by deducting €300 from orderline 1 and €200 from orderline 2.
If the invoice amount deviates from the outstanding or delivered order amounts, Spend Cloud proposes a match in these situations as well.
The matching screen displays proposed matches, and you can always manually adjust them. If Spend Cloud cannot propose a suitable match, you can manually create a match.
In this matching screen you see that the order consists of one orderline. The outstanding order amount did not match the amount of the invoice. To still make a match in this situation, Spend Cloud proposes to deduct the total amount of the invoice of the orderline. An explanation for this can be found by moving your mouse of the question mark.
The explanation about proposed matched amounts can be found in every scenario by moving the mouse over the question mark at the orderline.
When the difference between the invoice and the order amount falls within the specified tolerance threshold (configurable at the supplier level), Spend Cloud proposes to proportionally distribute the difference across the order lines. If the difference exceeds the set tolerance, Spend Cloud suggests booking it on a separate invoice line.
In the example below, Spend Cloud proposes a distribution of the invoice amount over the order lines when the invoice amount is higher than the outstanding (undelivered) amount but within the configured tolerance.
Suppose the configured tolerance for this supplier is 5%, and the total outstanding order amount is €100. An invoice arrives with a total amount of €104.
Outstanding orderline amount | To match | |
Orderline 1 | €95,- | €98,50 |
Orderline 2 | €5,- | €5,20 |
Total | €100,- | €104,- |
Because Spend Cloud proportionally distributes the difference over the order lines, an automatic match can be made, allowing the invoice to be automatically approved. This applies not only when the total invoice amount is higher than the order but also when the difference falls within the configured deviation tolerance.
You can always manually adjust an automatic matching proposal. Even if Spend Cloud cannot propose a suitable match, you have the flexibility to manually create a match.
Matching partially from an order
If a partial invoice arrives or the order is incomplete, you can specify which part of the total order to match. In this case, the 'Difference' on the right side will show a significant difference because only a portion of the order is being invoiced.
You can indicate what should be matched for each order line under 'To match.' If a product is not delivered, set the amount to '0' or uncheck the order line on the left. The 'Remaining' column shows the remaining amount after matching, which can potentially be matched with a subsequent invoice.
When only a portion of the order is invoiced, a significant difference is visible on the right side under 'Difference.' The invoice amount does not match the total to be matched, causing the difference to be displayed in red instead of green.
In the order details, you can determine if all ordered products have been received. If a product has not been delivered, is incorrect/returned, or canceled, the value under the truck icon will not be green but will have a different color. By hovering your mouse over the delivery, you can see how much has been delivered or not. Examining these details helps identify which order lines need to be matched and the corresponding amount to be matched.
You can now specify what needs to be matched for each order line under 'To Match.' If a product has not been delivered, set the amount under 'To Match' to '0' or uncheck the order line on the left side. This automatically sets the amount to be matched to '0.' If there is '1/2' for an order line, it means that one of the two products has been delivered. The amount to be matched has already been adjusted to the value of the delivered products. You only need to verify this, but you can adjust it if necessary. In the 'Remaining' column, you can see the amount that remains after matching. This amount can be matched in a subsequent invoice if needed.
By default, the 'To match' value is displayed as an amount. You can change this to match quantities by adjusting the settings at the top right corner under the gear icon. You can also choose to display amounts inclusive or exclusive of VAT.
Even with a partial invoice, you have the option to automatically approve the invoice lines if there is no difference between the amount to be matched and the invoice amount.
If the full order amount hasn't been matched due to a partial delivery, you may not want to complete the order just yet. It's important to keep the order visible in the list of available orders so that subsequent invoices can still be matched with this order. In such cases, you would leave the option for 'Complete Order(s)' unchecked.
Matching Orders with Permanent Differences
In cases where there is a permanent difference between the invoice amount and the to-be-matched total, such as shipping costs or applied discounts, Spend Cloud provides two options to book the difference: 'Distribute over invoice line(s)' and 'Book on a separate invoice line.'
At 'Difference' on the rightside of the screen you can see what the deviation between the invoice amount and the matchable amount. Because there is a permanent difference there will be two options which lets you indicate how you want to book the difference. These are the options 'Distribute over invoice line(s)' and 'Book on separate invoice line'.
Choosing 'Distribute over invoice line(s)' distributes the difference across the invoice lines, and no additional invoice line is created for the difference. This allows you to automatically approve the invoice if the difference falls within the tolerance.
Selecting 'Book on a separate invoice line' creates an additional invoice line for the difference. This provides visibility in the financial package for the variance between the invoice amount and the order.
If the full order amount is not matched due to a permanent difference, you may want to complete the order. Check 'Complete Order(s)' to mark the order as complete and remove it from the list of available orders.
Automatically Approving Invoices Based on an Order
When matching orders, it's possible to automatically approve invoices, eliminating the need for approval from the budget holder. To automatically approve an invoice, certain conditions must be met:
- The supplier is set to allow automatic approval.
- The supplier is linked to the relevant relation.
- The invoice(line) amount falls within the order(line) deviation tolerance.
- The order(line) receipt is recorded in Spend Cloud.
If all conditions are met, you can automatically approve the invoice line.
If the invoice amount exceeds the order amount, automatic approval is not possible, and Spend Cloud shows a notification.
In cases where the order receipt is not recorded, automatic approval is also not possible, and Spend Cloud provides a notification.
You can also send a reminder directly from the invoice line.
Depending on the configuration in your Spend Cloud environment, you may have the option to choose 'Wait for receipt' in the invoice, putting it on hold until the receipt is registered. After the receipt is registered, the invoice will be send automatically. You'll find these options at the top of the invoice.
Additionally, you can still submit the invoice for review by the budget holder. However, it's recommended to do this only if the receipt should have already been recorded. Some creditors send invoices on the same day as delivery, and the receiver may not have had time to register the receipt.
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