Matching a bill to a purchase order means checking the invoice lines against what was ordered (and sometimes received) before you pay. What is purchase order?
Before you start
- Invoice matching key on
- Accounts payable admin
The Dynamics 365 Finance way
Where to find it: Accounts payable > Setup > Accounts payable parameters > Invoice validation
- Turn on Enable invoice matching validation.
- Pick the matching policy: Invoice totals, 2-way or 3-way and charges matching.
- Receive the goods and post a product receipt.
- Create the invoice from the order and choose Matching details to see passed or failed lines.
Limits in Dynamics 365 Finance
- Matching can be set at the legal entity and overridden on item and order line.
Good to know in Dynamics 365 Finance
- Set Post invoice with discrepancies to Require approval and a user approves posting with discrepancies on Invoice matching details.
Words Dynamics 365 Finance uses
- Product receipt. A posted record that goods arrived against a purchase order.
- Invoice matching. Checking the invoice against the purchase order and product receipt, within set tolerances.
The Pulsify way
- Sync your open POs from Dynamics 365 Finance to Pulsify.
- Forward the supplier's invoice. Pulsify links it to the right purchase order.
- Pulsify matches each line on quantity and unit price, to within 1 cent.
- Review flags for price differences, extra quantity and lines not on the PO.
- Approve. The vendor invoice is created in Dynamics 365 Finance against the purchase order.
Pulsify connects to Dynamics 365 Finance. We set up the connection for you.
What Pulsify does not do here
- Pulsify has no tolerance setting. It compares to the cent.
- Flags are warnings. Your approver decides.
Common mistakes
- Posting the invoice before the product receipt, so a 3-way match has no receipt to match.
- Setting the policy for the legal entity and forgetting an override on an item or order line.
More help
- How to match an AP invoice to a purchase order in Kinetic
- How to match a supplier invoice to a purchase order in IFS Cloud
- How to match a voucher to a purchase order in CloudSuite Industrial
- How to handle a partial delivery against a purchase order in Dynamics 365 Finance
- How to set a price tolerance on purchase order matching in Dynamics 365 Finance
- How to raise a purchase order and get it approved in Dynamics 365 Finance
- All Dynamics 365 Finance how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
- learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/accounts-payable-invoice-matching
- learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/tasks/set-up-accounts-payable-invoice-matching-validation
- learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/tasks/key-invoice-data-ap-system-vendor-invoice
- learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/invoice-matching-intercompany-purchase-orders
Also confirmed by
Common questions
How do I turn on invoice matching?
Go to Accounts payable > Setup > Accounts payable parameters > Invoice validation. Turn on Enable invoice matching validation, then pick Invoice totals, 2-way or 3-way and charges matching.
Where do I see which lines failed?
Create the invoice from the order and choose Matching details to see passed or failed lines. For 3-way matching, receive the goods and post a product receipt first.
Can matching differ by item?
Yes. Matching can be set at the legal entity and overridden on the item and the order line.
What does Pulsify flag?
A unit price that differs from the PO, a quantity above the PO line and lines that are not on the PO.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier bills in Dynamics 365 Finance.