# Supplier price checks in Dynamics 365 Finance for manufacturers

Dynamics 365 Finance has supplier price checks built in. Raw material prices move with metal, resin and energy markets, so the purchase order price is often out of date when the invoice lands.

## Why it matters for manufacturers

- A cost per unit that is wrong by a few cents changes margin on every product that uses the material.
- Surcharges for steel, fuel and currency are added late and may not be in the supplier agreement.

## For manufacturers in Dynamics 365 Finance

- On Price tolerances set unit price tolerance percentages per item, item group, vendor or vendor group. The default for the legal entity is zero percent for two-way and three-way matching, so set a tolerance for volatile raw materials.
- Match price totals suits suppliers who invoice one order line in several parts. Choose percentage, amount or both. Percentage uses the transaction currency and amount uses the accounting currency.
- Invoice totals tolerance percentage can be overridden for specific vendors on the Invoice totals tolerances page.

## What Dynamics 365 Finance does on its own

Net unit price and price totals matching within a percent or amount tolerance.

Tolerance can be set per legal entity and overridden on the item.

What you need and the setup steps: https://www.pulsify.tech/supplier-price-checks-for-dynamics-365-finance/

## Example

Example Resin Supplies sends an invoice for 4,000 kg of polypropylene. The purchase order price is $2.10 a kg. The invoice charges $2.28 a kg.

- Polypropylene, 4,000 kg at $2.28: $9,120.00 (Order price was $2.10, so the line is $720 over)
- Fuel surcharge: $85.00 (Not on the order)
- Pallet fee: $40.00 (Not on the order)

The check flags the price rise of $0.18 a kg and both surcharges. Purchasing confirms the new rate or disputes it before the bill goes to approval.

## Common mistakes

- Letting the purchase order price be edited to match the invoice, which erases the evidence of a price rise.
- Accepting surcharges because the amount is small, then finding they add up over a year.

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

- How to check vendor invoice lines against agreed vendor prices in Dynamics 365 Finance: https://www.pulsify.tech/how-to/check-bills-against-agreed-supplier-prices-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 checks every line against the purchase order or a price list you upload for each vendor. Pulsify connects to Dynamics 365 Finance. We set up the connection for you. More: https://www.pulsify.tech/po-matching/

## Common questions

### Can Finance set different price tolerances for each raw material?

Yes. The Price tolerances page accepts a percentage for the legal entity, an item, an item group, a vendor, a vendor group or an item and vendor pair. The legal entity default is zero percent. Invoice totals have their own tolerance, which can be set per vendor.

### Are small surcharges worth checking?

Yes. A $40 pallet fee on 300 deliveries a year is $12,000. Check recurring surcharges against the supply agreement and ask for them to be fixed in writing.

### Does Finance check unit price against the order?

Yes. Pick Net unit price matching and set a tolerance as a percentage or amount. Invoices outside it show variance icons. A user can approve posting with the variance when Post invoice with discrepancies is set to Require approval.

## Sources

- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/tasks/set-up-accounts-payable-invoice-matching-validation
- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/accounts-payable-invoice-matching
- 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/supplier-price-checks-in-dynamics-365-finance-for-manufacturers/ (last checked 2026-10-19)