This is a part of the AP Invoices within the Inventory app.
The Link PO button on the AP Invoice form links a purchase order to an AP invoice. Selecting it opens a list of purchase orders to preview and choose from. A linked purchase order supplies the invoice location and vendor, populates the Line Items grid, and displays any issues between the AP invoice and the purchase order. Link PO is available before a vendor is selected. It is not available on memorized templates.
When the automatch feature is enabled, AP invoices will automatically link to submitted purchase orders when the two meet matching criteria. Users can also manually link purchase orders to AP invoices when needed.
Managers should have the necessary AP Invoice Security to access this function.
AP Invoice & Purchase Order Autolink
When this feature is enabled in an instance, R365 purchase orders and AP invoices will autolink when both the purchase order and the AP invoice meet specific criteria. Once an AP invoice is created, it will be matched to a submitted purchase order that follows the automap logic.
Enable/Disable Purchase Order/AP Invoice Autolink
The purchase order/AP invoice automatching feature can be enabled from the System Preferences: Miscellaneous tab.
To enable automatching, ensure that the Automatch PO to AP checkbox is checked. To disable this feature, ensure that the checkbox is unchecked.
Automap Logic and Matching Rules
A submitted PO will automap to an AP Invoice when:
The PO and AP invoice have the same vendor.
The PO and AP invoice have the same location.
The PO total and AP invoice total are within a certain % variance, and the PO delivery date and invoice date are within a certain number of days. These are dependent on the tiered matching rules.
When the vendor and location on both the submitted PO and AP invoice are the same, the system will follow these tiered matching rules (in order) to search for matches:
Rule 1 | PO Number matches the reference PO number (via EDI import).
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Rule 2 | The invoice total amount is within 10% of the PO total, and the invoice date is within 1 day of the PO delivery date. |
Rule 3 | The invoice total amount is within 10% of the PO total, and the invoice date is within 3 days of the PO delivery date. |
Rule 4 | The invoice total amount is within 30% of the PO total, and the invoice date is within 1 day of the PO delivery date. |
Rule 5 | The invoice total amount is within 30% of the PO total, and the invoice date is within 3 days of the PO delivery date. |
Once the AP invoice is marked as complete. The Link Purchase Order button will automatically update to reflect the purchase order number that the system has linked the invoice to.
Manually Link Purchase Order
Follow these steps to link a purchase order to an AP invoice on the AP Invoice Form.
Click steps to expand for additional information and images.
1) Open the AP invoice.
Create a new AP Invoice, or open an existing unapproved invoice. Learn more about where to find AP Invoices in Accounting and Inventory.
2) Click Link PO.
A list of purchase orders matching the invoice location opens. If a vendor is already selected, the list shows only that vendor's purchase orders.
Link PO is disabled when no existing purchase orders match the invoice location. Link PO is also disabled for users who have AP invoice permission but no access to Food purchase orders. Link PO does not appear on memorized templates.
3) Click Link PO next to the purchase order.
To review a purchase order before linking it, click its PO number.
4) Review the invoice.
The purchase order sets the invoice location and vendor. R365 updates the dependent fields the same way as when a user selects them manually: payment terms, due date, Mark as paid, 1099 fields, and GL date. Every purchase order line appears in the Line Items grid at once. R365 does not add the vendor's default expense row on top of the purchase order lines. To add another line, click Add line.
AP Invoice Date
When a purchase order is linked to an AP invoice, the invoice date may be either of the following:
The date listed on the AP invoice or
The purchase order delivery date
This is dependent on the Invoice date setting in the Procurement of the Vendor form:
Invoice date - the date on the invoice will remain as it was entered
Delivery Date - the date on the invoice will update to match the delivery date from the purchase order that was linked to the invoice.
Alerts Tab
Any issues between the Purchase Order and the AP Invoice are displayed on the Alerts tab:
Item on PO Not on Invoice - The corresponding item is listed on the PO but not on the invoice.
Item on Invoice Not on PO - The corresponding item is listed on the invoice but not on the PO.
Price Difference from PO - The amount entered for the corresponding item's Each Amt field is different between the invoice and the PO.
Quantity Difference from PO - The corresponding item's UofM on the invoice does not match to the UofM on the invoice.
Contract Violation [Description] - The corresponding item's Each Amt is outside of the acceptable variance set for the contract price on the Vendor Item record.
This will only be enforced for an item with the same UofM on the invoice and PO.
Learn more about the Alerts tab on the AP Invoice.
Unlink a Purchase Order From an AP Invoice
To unlink a purchase order from an AP invoice, users must have the following permission:
Food → AP Invoices → Edit AP Invoices
Only AP invoices that are In Progress can have their purchase order unlinked. Invoices that are Completed or Approved can not be unlinked from a PO.
To unlink a purchase order from an AP invoice, follow these steps:
1) Open the desired AP invoice.
Learn more about where to find AP Invoices in Accounting and Inventory.
3) Find the linked PO in the list of purchase orders and click the Unlink PO button.
4) Confirm that the PO reference will be removed from the matched line item(s), and the rows will remain.
