13.1 Financial Matching

Return quantities are netted against receipt quantities for financial matching purposes. For example if a quantity of 14 is received and 3 items are logged in PECOS P2P as returned (for any reason) a net receipt quantity of 11 is used as the quantity matched against the invoice quantity for 3-way matching.

If returns are therefore processed for over-shipment or duplicated delivery you must be aware of the affect on 3-way financial matching. It may be necessary in order to avoid mismatches, to ensure returned items are receipted. It is important that the net total of receipts and returns represents the quantity of items physically received and available for invoicing.

For example: 10 items are ordered and 12 items are delivered. 10 items are kept and 2 returned to the supplier. To ensure that financial matching is accurate two options are available (please refer to your organisation’s policies and procedures for the appropriate processing):

Receive 10 items and do not log the return of 2
Receive 12 items and log the return of 2

It is recommended that ALL received items are processed and ALL returned items are processed to maintain an accurate audit trail.