Version: Current

Understanding Document Matching (Allocations)

A key function in Zudello, particularly within the Purchasing module, is Document Matching (also referred to as Allocations). This is the process of linking related documents together to verify transactions and automate workflows.

Core Concepts:

Purpose: To verify that what was invoiced aligns with what was ordered and/or received.
Common Scenarios:
- Two-Way Matching: Comparing a Supplier Invoice against a Purchase Order (PO). Goal: Ensure you're billed for what you ordered at the agreed price.
- Three-Way Matching: Comparing a Supplier Invoice against both a Purchase Order (PO) and a Goods Receipt (GR). Goal: Ensure you're billed for what you ordered and actually received.
Linking Mechanism: Zudello automatically attempts to link documents based on shared information:
- Supplier/Customer: Documents must belong to the same linked Supplier/Customer record.
- PO Number: The PO number extracted from the Invoice header or lines is used to find the corresponding PO document number. GRs are often linked via the PO they were created from.
Matching Level: Matching can occur at different levels, configured by administrators:
- Document Level: Compares header totals (less common, usually for amount-based matching).
- Line Level: Compares individual line items between documents (most common).
Matching Method (Line Level): How lines are compared depends on configuration:
- Quantity-Based: Focuses on matching quantity and unit_price (calculating variances). Best for goods.
- Amount-Based: Focuses on matching total_exclusive_local (value). Best for services/blanket POs.
- See: Quantity vs. Amount-Based Matching Explained
Matching Criteria (Line Level): When comparing lines, Zudello uses criteria like:
- Item SKU / Code
- Item Description
- Unit Price (within tolerance)
- Quantity
Outcome: Successful matching creates Allocation records linking the documents. Zudello then calculates:
- Allocation Status: (Full, Partial, Invalid) - Indicates if the documents are fully matched based on the chosen method.
- Variance: (Amount, Percentage) - Highlights differences, primarily price variance in quantity matching.
- Remaining: Quantity or Amount left unallocated on the source document (PO/GR).
- Discrepancy: A combined measure of variance and remaining amounts.
Automation: The calculated Status and Variance values are crucial inputs for Automation Sentences, allowing workflows to be routed automatically (e.g., auto-approve perfect matches, route variances for review).

Understanding these concepts helps interpret matching icons, troubleshoot issues, and appreciate how Zudello automates invoice validation.