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Understanding Allocation Calculations (Variance, Remaining, Discrepancy)

When Zudello matches documents (e.g., an Invoice against a Purchase Order), it calculates several key figures to help you understand the completeness and accuracy of the match. These calculations are crucial for automated workflows and identifying potential issues.

Core Concepts:

Allocation: The process of linking lines or amounts between related documents (e.g., Invoice line linked to PO line).
Matching Method: Calculations differ based on whether matching is configured as Quantity-Based or Amount-Based. See Quantity vs. Amount-Based Matching Explained.

Key Calculated Metrics:

Remaining Quantity / Amount:
- Purpose: Shows how much is left on the source document (e.g., PO) after accounting for allocations from the target document (e.g., Invoice).
- Quantity Matching: Remaining Qty = Original PO Line Qty - SUM(Allocated Invoice Line Qtys)
- Amount Matching: Remaining Amt = Original PO Line/Header Amt - SUM(Allocated Invoice Line Amts)
- Significance: Used to determine the Allocation Status (Full/Partial). A remaining value indicates the PO is not yet fully invoiced/received.
Variance Amount / Percentage:
- Purpose: Highlights differences in price between matched documents. Primarily relevant for Quantity-Based Matching.
- Calculation (per line):
  - Variance Amt = (Invoice Unit Price - PO Unit Price) * Allocated Qty
  - Variance % = (Variance Amt / PO Line Excl. Total) * 100
- Significance: Flags potential overcharges or price discrepancies compared to the original order. Used in Sentences to route invoices with variances for specific approval. Positive variance means the invoice price is higher; negative means it's lower.
Discrepancy Amount / Percentage:
- Purpose: Provides a single metric representing the overall difference between the documents, combining both variance and remaining amounts. Useful for simplified approval routing based on a total discrepancy tolerance.
- Calculation:
  - Quantity Matching: Discrepancy Amt = SUM(Positive Variance Amts) + SUM(Remaining Amts) (Calculated from the perspective of the PO/GR, ignoring negative variances where the invoice price was lower).
  - Amount Matching: Discrepancy Amt = Remaining Amt
  - Discrepancy % = (Discrepancy Amt / Original PO Total Excl.) * 100
- Significance: Offers a consolidated view of how much the invoice differs from the expected PO value/quantity, considering both price differences and incomplete allocations. Can be used in Sentence conditions.

These calculated values provide the data needed for Zudello's matching icons, allocation statuses, and automated workflow routing based on matching results.