# PO matching in Dynamics 365 Finance for wholesalers

Dynamics 365 Finance has PO matching built in. One purchase order often turns into several deliveries and several invoices. A wholesaler cannot match each bill to the full order without double counting what has already arrived.

## Why it matters for wholesalers

- Freight and handling arrive as extra lines on the vendor invoice. They do not sit on the purchase order, so a strict match fails even when the stock is correct.
- Short and damaged deliveries mean the invoice quantity can be higher than what the warehouse booked in.

## For wholesalers in Dynamics 365 Finance

- For a part delivery, choose the product receipts on the invoice line. The invoice quantity is checked against the product receipt quantity. If the invoice is for less than the matched receipt, a feature option can block posting and submission to workflow.
- In workflow, an approver can update invoice quantities to match the Product-receipt-quantity-to-match value. Turn on Update the invoice quantities to match product receipt quantities in workflow in Feature management. If all receipt matches are removed from a line, the line is deleted.
- Freight from a supplier can be added by automatic charges. On Procurement and sourcing parameters, Prices tab, set Find auto charges for header and Find auto charges for line to Yes. Define charge codes for a vendor, vendor group, item or item group.
- Charges matching compares charges on the invoice with charges on the purchase order.

## What Dynamics 365 Finance does on its own

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

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.

What you need and the setup steps: https://www.pulsify.tech/po-matching-for-dynamics-365-finance/

## Example

Example Packaging Co sends invoice 4471 for a purchase order of 2,000 cartons. The warehouse booked in 1,200 on Monday and 600 on Thursday. The last 200 are on back order.

- Cartons, 2,000 ordered, invoiced at 1,800: $5,400.00 (Warehouse received 1,800, so quantity agrees)
- Freight and fuel levy: $260.00 (Not on the order, so it needs a freight code)
- Cartons 200 back order, invoiced early: $600.00 (Not received, so this line fails the match)

In Dynamics 365 Finance the 1,800 cartons match the two receipts and pass. The back order line and freight line are held for review, so the wholesaler does not pay for stock still on the road.

## Common mistakes

- Matching to the order total instead of the quantity booked in, which pays for back orders.
- Rejecting a bill because the freight line is not on the order, instead of coding it as a landed cost.

## Step-by-step guides for Dynamics 365 Finance

- How to match a vendor invoice to a purchase order in Dynamics 365 Finance: https://www.pulsify.tech/how-to/match-a-bill-to-a-purchase-order-in-dynamics-365-finance/
- How to handle a partial delivery against a purchase order in Dynamics 365 Finance: https://www.pulsify.tech/how-to/handle-a-partial-delivery-against-a-po-in-dynamics-365-finance/
- How to set a price tolerance on purchase order matching in Dynamics 365 Finance: https://www.pulsify.tech/how-to/set-a-price-tolerance-on-po-matching-in-dynamics-365-finance/

## What Pulsify adds

Pulsify matches each bill line to a purchase order line and flags extra quantity, a different price or lines not on the purchase order. Pulsify connects to Dynamics 365 Finance. We set up the connection for you. More: https://www.pulsify.tech/po-matching/

## Common questions

### How does Finance handle a wholesale order delivered in parts?

Each delivery gets a product receipt. On the invoice you pick the receipts that apply and Finance matches the quantity to them. The price is matched to the purchase order line. Differences outside tolerance show as match variance icons until approved.

### How should a wholesaler match split deliveries?

Match each invoice to the product receipt lines booked in so far, not the full order. Stock still on back order stays open. This pays only for goods you hold.

### What happens when an invoice fails the match?

Failed lines show variance icons. With Post invoice with discrepancies set to Require approval, a user approves posting with the discrepancies on the Invoice matching details page.

## Sources

- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/vendor-invoices-overview
- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/accounts-payable-invoice-matching
- https://learn.microsoft.com/en-us/dynamics365/supply-chain/procurement/automatic-charges-allocation
- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/invoice-matching-intercompany-purchase-orders
- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices

### Also confirmed by

- Microsoft Certified Trainer matching guide, 2026: https://d365training.com/blog/three-way-matching-in-d365-finance-setup-and-resolution/

Source: https://www.pulsify.tech/po-matching-in-dynamics-365-finance-for-wholesalers/ (last checked 2026-10-19)