# PO matching in Sage 300 for builders

Sage 300 covers part of PO matching on its own. A subcontract order is claimed in stages, so one purchase order produces many A/P invoice documents. Each claim must be checked against the total already claimed and certified, not just against the order value.

## Why it matters for builders

- Variations arrive as separate claims. A claim that includes variation work with no approved variation order is the most common way a job goes over budget.
- Retention is held back on each claim. If the retention line is wrong, you pay out money you were meant to hold until practical completion.

## For builders in Sage 300

- Tick Job Related on the purchase order and give every detail a contract, project and category. This needs Project and Job Costing. Posting the order updates the committed quantities and costs for that job.
- Do not edit a job related invoice in Accounts Payable if it started in Purchase Orders. Accounts Payable does not pass the change to Project and Job Costing. Make the change in P/O Invoice Entry or with an A/P adjustment.
- A job related invoice only moves job costs when it differs from the posted receipt. If the quantity, billing rate and cost match the receipt, nothing new goes to Project and Job Costing.
- One order cannot mix job and non job details. Serialized and lotted items cannot go on a job related order. Order them on a normal order and receive them into inventory. Then use Material Usage in Project and Job Costing to move them to the job.

## What Sage 300 does on its own

Matching in Sage 300 is done by invoicing from the receipt. In P/O Transactions > Invoice Entry you enter the receipt number and the invoice shows the receipt information. Cost differences post to the payables clearing account. Sage 300 has no tolerance setting. Third-party three-way matching add-ons add one.

- Third-party three-way matching add-ons add Warning, Tolerance or Error limits.
- Sage 300 has no tolerance setting in the Purchase Orders or Accounts Payable guides.

You cannot partially invoice receipts of serialised or lotted items.

What you need and the setup steps: https://www.pulsify.tech/po-matching-for-sage-300/

## Example

Example Concreting Pty Ltd holds a subcontract purchase order of $80,000 ex GST for slab works on project 214. Claims 1 and 2 already total $55,000 ex GST. Claim 3 arrives for $30,000 ex GST.

- Claim 3 slab pour, level 2: $30,000.00 (Claim brings the total to $85,000, which is $5,000 over the order)
- Retention held at 5%: -$1,500.00 (Matches the retention rate on the order, so this line is fine)

Claims to date now pass the order value by $5,000. The claim goes to the project manager to confirm a signed variation before it is approved.

## Common mistakes

- Matching each claim to the full order value instead of the balance left after earlier claims.
- Paying a variation line because the work was done on site, with no signed variation order behind it.

## Step-by-step guides for Sage 300

- How to match a vendor invoice to a purchase order in Sage 300: https://www.pulsify.tech/how-to/match-a-bill-to-a-purchase-order-in-sage-300/
- How to handle a partial delivery against a purchase order in Sage 300: https://www.pulsify.tech/how-to/handle-a-partial-delivery-against-a-po-in-sage-300/

## 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 Sage 300. We set up the connection for you. More: https://www.pulsify.tech/po-matching/

## Common questions

### Can one Sage 300 purchase order cover a job and general stock?

No. A transaction cannot mix job related and non job related details, so split the order in two. Serialized and lotted items also cannot sit on a job related order. Receive them into inventory first. Then move them to the job with Material Usage in Project and Job Costing.

### What happens if the claim is more than the order?

Hold it until the project manager confirms a signed variation. Security of payment laws set short deadlines to respond to a claim, so raise the difference quickly and give written reasons if you pay less.

### Does Sage 300 do three-way match?

It links order, receipt and invoice by invoicing from the receipt, but the 2023 guides have no tolerance setting. Third-party add-ons such as Greytrix three-way PO matching add Warning, Tolerance or Error limits.

## Sources

- https://cdn.na.sage.com/docs/en/customer/300erp/2023/open/Sage300_PurchaseOrders_UserGuide.pdf
- https://www.nsw.gov.au/housing-and-construction/compliance-and-regulation/security-of-payment/responding-to-a-payment-claim
- https://www.qld.gov.au/securityofpayment

Source: https://www.pulsify.tech/po-matching-in-sage-300-for-builders/ (last checked 2026-10-19)