Two Way and Three Way Matching in Finofo: Modes, Tolerances and Exceptions

How It Works

Finofo compares each invoice line with its PO line and, in 3-way mode, the posted goods receipt, in the item's base unit. Linking items to the Products & services catalog lets Finofo convert pack sizes. Each line ends up Matched or in Needs review, for example Awaiting receipt or a price variance.

A tolerance is set two ways, and whichever value is greater applies, per line. A vendor can override the organization mode (3-Way Matching or Invoice Only) and its tolerances on its profile. Lines in Needs review are decided in reconciliation with Pay accepted quantity, Accept variance, Code as expense or Unmatch line, plus Pay PO price on price variance lines.

Check the Matching Mode

Each mode below shows what it compares, followed by its typical use.

• 3-Way Matching: Invoice against PO and goods receipt.
  Physical goods where deliveries are counted.
• 2-Way Matching: Invoice against PO only.
  Ordered items or services without a formal receiving step.
• Invoice Only: No matching to other documents.
  Bills without a PO, such as utilities.

1. Open Settings > Matching to see the organization's mode.

2. To change it, contact Finofo support at support@finofo.com.

3. To override it for one vendor, open the vendor's Profile tab and change Matching Mode.

Set Tolerances

1. Open Settings > Receiving.

2. Set Receiving tolerance in percent or units.

3. Set Invoice match tolerance: price as a percent or amount, and quantity as a percent or units.

4. For one vendor, open its Profile tab and set Tolerances. Until you do, it shows Using org default.

• Receiving tolerance: Over-received units within tolerance are accepted on the goods receipt; above it they are flagged for approval.
• Invoice match: Price: Price differences within tolerance match automatically.
• Invoice match: Quantity: Quantity differences within tolerance match automatically.

Tips

• Start with small, non-zero tolerances so rounding differences do not need review.
• Use vendor overrides for suppliers whose quantities legitimately vary, for example goods sold by weight.
• Do not turn on Single line extraction where three way matching by line is needed; it flattens each invoice to one line.

Frequently Asked Questions

What is the difference between 2-way and 3-way matching?

2-way compares the invoice with the PO. 3-way also checks the goods receipt, so you pay only for what was received.

Can different vendors use different matching modes?

Yes. The organization sets a default, and a vendor can be set to 3-Way Matching or Invoice Only on its profile.

How does 'whichever is greater' work?

Take a price tolerance of 2% or $5. On a $1,000 line, 2% is $20, so up to $20 matches automatically. On a $100 line, 2% is $2, so the $5 amount applies.

What happens with a tolerance of 0?

Every difference needs a decision in reconciliation.