PO matching for Dynamics 365 Finance

PO matching means checking a supplier bill against the purchase order it belongs to before you pay it.

What Dynamics 365 Finance does on its own

Invoice totals, 2-way, 3-way and charges matching with tolerances.

What you need in Dynamics 365 Finance

• Invoice matching feature turned on
• Accounts payable administrator role
• Supply Chain Management for full receiving

Setting it up in Dynamics 365 Finance

Where to find it: Accounts payable > Setup > Accounts payable parameters > Invoice validation

1. Turn on Enable invoice matching validation.
2. Pick the matching policy: Invoice totals, 2-way or 3-way and charges matching.
3. Receive the goods and post a product receipt.
4. Create the invoice from the order.
5. Choose Matching details to see passed or failed lines.

Good to know in Dynamics 365 Finance

• Matching can be set for the legal entity and overridden on the item and the order line.
• Set Post invoice with discrepancies to Require approval on Accounts payable parameters and the system runs invoice matching validation. A user then approves posting with discrepancies on the Invoice matching details page.
• Partial price totals are checked on the last invoice for that order line.

How to do it in Dynamics 365 Finance

How to match a vendor invoice to a purchase order in Dynamics 365 Finance

In Dynamics 365 Finance, open the purchase order, compare each vendor invoice line to the purchase order line on quantity and unit price and query any difference before you approve.

How to handle a partial delivery against a purchase order in Dynamics 365 Finance

In Dynamics 365 Finance, keep the purchase order open, check each vendor invoice against what has been billed so far and close the purchase order only when the last delivery is invoiced.

How to set a price tolerance on purchase order matching in Dynamics 365 Finance

In Dynamics 365 Finance, decide how far a vendor invoice line may differ from the purchase order before a person must look at it. Set that limit where Dynamics 365 Finance allows one and name who can pass a difference.

What Pulsify adds

1. Your open purchase orders come into Pulsify from Dynamics 365 Finance.
2. Pulsify links each invoice to its purchase order.
3. It matches each invoice line to a PO line and flags lines that bill more than ordered, are priced differently or are not on the PO.
4. A panel shows how much of the PO has been claimed, what this invoice adds and what is left. This handles part deliveries and progress claims.
5. 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. More about PO matching in Pulsify.

What Pulsify does not do

• PO matching is two-way: invoice to PO. Pulsify has no goods receipts.
• There is no tolerance setting. Pulsify compares to the cent and the approver decides.

More help

• PO matching for Kinetic
• PO matching for IFS Cloud
• PO matching for CloudSuite Industrial
• Supplier price checks for Dynamics 365 Finance
• Purchase orders for Dynamics 365 Finance
• Supplier statement reconciliation for Dynamics 365 Finance
• All Dynamics 365 Finance how-to guides

Sources

Last checked 2026-10-19.

• 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/invoice-matching-intercompany-purchase-orders

Also confirmed by

• Microsoft Certified Trainer matching guide, 2026