In Odoo 18, a vendor bill is created to record supplier invoices for purchases made, linking them to corresponding purchase orders and receipts. This process helps manage accounts payable and ensures accurate financial tracking for payments and expenses.
Three-way matching in Odoo 18 is a process that ensures accuracy by comparing three key documents: the purchase order, the vendor bill, and the receipt. It verifies that the quantities and prices on the vendor bill match the purchase order and that the items have been received as expected. This reduces discrepancies, improves financial accuracy, and minimizes the risk of overpayment or fraud.
To help you comprehend the different invoicing phases, the accompanying document explains 3-Way Matching in the Odoo 18 Purchase module. To decide whether you should pay, 3-Way Matching examines the information in the Purchase Order, Vendor Bill, and Receipt. as well as when you want to wait to pay until the goods are delivered. Three-way matching is another option in certain situations. This prevents you from paying vendors for erroneous or fraudulent invoices.
Make sure the bill control policy is set to Received Quantities before you can set up 3-way matching. For product purchases, Odoo offers two different kinds of bill control rules. based on both the quantity received and the quantity ordered.
Once the transaction has been verified, you can create a vendor bill if the policy is based on Ordered Quantities. The amounts on the draft vendor bill and the quantities purchased will match. Create vendor bills in the Received Quantities once the ordered products have been received. Depending on the amount you have received, you can utilize this option to pay the vendor bill.
After you choose a suitable Bill Control option from the Settings page, Odoo will set this control policy as the default for all newly created goods. From the product detail page, you can change the predefined control policy of a particular product.
Here is a product named Drawer. The purchase tab of the product shows the control policies where the users can set the bill control policy of the product.
Let's set up the 3-way matching now. To do that, go to the purchase module's configuration settings under the invoicing session.
After saving the settings, let's create a new quotation for the vendor or make a purchase order using the product's received quantity control policy.
The screenshot below shows a quotation created for the vendor named Aka Foster. From the vendor, the company requested 10 quantities of Drawer. The unit price and total price of the order are also visible there. Confirm the RFQ.
After confirming the order, users can receive the products. For that open Receipt. Receipt shows the quantity of products. To receive the product Drawer with 10 quantities click on the Validate button.
Only after receiving the goods, users can create new bills. The purchase order shows a new button named Create Bills.
The Draft bill is shown in the image below. The quantity inside the bill is 10 quantities. Which is the actual received quantities. Check the Other Info tab of the bill.
The vendor bills will now display the Should Be Paid field under the order's Other details tab after the feature has been enabled. Here, the received quantities and the billed quantities are equal. So the Should be Paid is shown as Yes.
Let's edit the bill quantity. As shown below, the user edits the quantity to 12. This means the received quantities are 10, but the user only creates a bill for 12 quantities.
Then again check the Other Info tab, to view the Should be Paid. Here the user received only 10 quantities. But by mistakenly the user creates a bill for more quantities, so the ‘should be paid’ is shown as Exception.
By default, three options are available in Should be Paid field:
Yes, in order to receive the things, you should have to pay the bill.
Upon recording a payment that indicates "Paid," the "Should Be Paid" condition is firmly set to "No."
The Exception is that the quantities that were billed, received, and purchased differ.
Because what is invoiced, what is received, and what is purchased are all different. In this way, we can detect any errors in the orders and stop fraudulent vendor billing.
"Should be paid" is an additional option, and the answer is no. It can happen by forceful selection, and when a payment is logged and indicates "Paid," it may appear to be tagged as force status.
An essential component of Odoo 18 is three-way matching, which lowers the possibility of fraud by guaranteeing correctness and consistency across purchase orders, vendor bills, and receipts. Businesses save time and effort by streamlining operations and improving financial management through the automation of the comparison process. In the end, this strong system encourages openness and confidence in the accounting and procurement procedures.
To read more about How 3 Way Matching Works in Odoo 16 Purchase Module, refer to our blog How 3 Way Matching Works in Odoo 16 Purchase Module.