PO Configuration

Written by Uday Kumar Updated

Overview

The PO Configuration settings control how SmartVendor handles purchase order (PO)–backed invoices in AP Invoices. These options determine:

  • Whether invoices must have a PO

  • How strictly invoice lines must match PO lines

  • How many decimal places are allowed for quantities and rates

  • Whether description, coding, and rate are taken from the PO or from the invoice

  • When PO‑driven values can override what was extracted from the bill

Correct PO configuration reduces manual work for AP analysts, improves PO match rates, and helps keep invoice data consistent with your ERP/System of Record (SoR).

In the SmartFlow wizard, PO Configuration is set during:

Smartflow Skill Configuration → Step 2: Settings → PO Configuration

When PO Configuration Matters

PO configuration directly affects the “Vendor driven by a Purchase order” path:

  • When SmartBot tags a bill to a vendor that is PO‑driven, AP analysts expect:

    • A PO number to be matched or selected

    • PO lines to be associated to invoice lines (PO Number and PO Line Number columns)

    • Description and coding on the bill to auto‑populate from the PO

It also underpins the PO Matching Logic:

  • How invoice/PO line matching behaves when descriptions, rates, or amounts differ

  • How lines are auto‑linked vs. flagged for human review

1. Require PO

This determines whether a PO is mandatory for invoices processed by AP Invoices.

  • Required

    • Invoices for vendors configured as PO‑driven must have a valid, open PO to proceed.

    • If the PO is missing, cannot be found in the SoR, is for a different vendor, or is fully consumed (no remaining balance), the bill will require human review and correction before being written to the SoR.

    • This aligns with environments where all spend must be PO‑based.

  • No

    • Both PO and non‑PO invoices are allowed.

    • SmartVendor still attempts PO matching when a PO number is present on the invoice, but it does not block processing if no PO is present.

    • Use this where you have a mix of PO and non‑PO vendors.

Best practice

  • Use Required for tightly controlled, PO‑centric processes.

  • Use No when many vendors legitimately submit non‑PO invoices (e.g., utilities, rent, professional services).

2. Max Decimal Allowed in Quantity and Rate

This setting defines the maximum number of decimal places allowed for quantity and rate (unit price) on invoice lines that are matched to POs.

  • Default is typically 2 decimal places.

  • You can configure between 0 and 8 decimal places to match your ERP’s precision.

This affects:

  • How SmartVendor calculates PO‑linked line amounts

  • How line mismatches and rounding differences are handled

  • Validation rules during PO matching and write‑back

Note: Amount fields are still rounded at 2 decimals (currency precision), even when quantity or rate support more decimals.

Example

  • ERP allows 4 decimals for rate: set Max Decimal Allowed to 4 so quantities and rates on vendor bills align with PO line precision.

3. Description Override

Description Override controls whether line descriptions on PO‑matched invoice lines come from:

  • The Purchase Order, or

  • The extracted invoice description

Options

  • Take Description from the Purchase Order

    • For any invoice line that is matched to a PO line, SmartVendor replaces the extracted invoice line description with the PO line description when the bill is saved.

    • Keeps descriptions consistent with purchasing records and downstream reporting.

  • Use the Extracted Description

    • For PO‑matched invoice lines, SmartVendor retains the description extracted from the invoice.

    • Use this if AP or downstream processes rely on vendor‑provided wording (e.g., detailed service descriptions).

Interaction with UI behavior

In your current flow for PO‑driven vendors:

  • When a PO Number and PO Line Number are associated to an invoice line (manually or via auto‑match) and the user saves,

  • Description and coding fields can be auto‑populated from the PO.

  • Description Override decides whether the PO is allowed to override the line description that SmartBot extracted.

4. Rate Override

Rate Override determines whether rate (unit price) on PO‑matched vendor bill lines should:

  • Default to the rate from the PO, or

  • Default to the rate from the invoice

Options

  • Take Rate from Purchase Order (recommended default)

    • When an invoice line is matched to a PO line and saved, the rate on the bill is set to the PO rate.

    • This ensures that PO‑backed invoices reflect the contracted or approved rate.

  • Use the Extracted Rate

    • When a line is matched to a PO, the rate remains as extracted from the invoice.

    • Use this only if your process allows legitimate deviations from PO pricing, and you want SmartVendor to respect the vendor’s stated rate by default.

User edits vs. overrides

  • If a user changes the rate on an invoice line after a PO match and then saves:

    • The user’s edit will be preserved.

    • Rate Override controls the default behavior at save time, not whether a user can change the rate.

5. Auto Calculation for PO‑Linked Lines

PO Configuration interacts with the line calculation logic:

  • Auto calculate amount as rate × quantity

    • When enabled, for valid quantity and rate values, SmartVendor recalculates the line amount as quantity × rate each time quantity or rate changes.

    • For PO‑driven lines, this ensures consistency between rate, quantity, and amount.

  • Auto calculate price as amount ÷ quantity

    • When enabled, if amount and quantity are provided and rate is blank, SmartVendor calculates rate as amount ÷ quantity.

    • Mainly useful when the invoice provides amount and quantity, and you want SmartVendor to infer the rate.

Together with Max Decimal Allowed, these settings:

  • Reduce data entry errors

  • Make PO line matching more robust

  • Provide predictable rounding behavior aligned with your ERP

6. Allow Override with PO/Contract Value

In SmartVendor Templates and SmartFlow configuration, fields can be marked as PO‑driven using:

Allow Override with PO/Contract value upon match with PO/Contract

When this is turned on for a field (for example, Entity, Location, Description, Account, Payment Terms):

  • Whenever a valid PO match is found, that field on the invoice will be overridden with the value from the PO or contract.

  • If there is no PO match, the field falls back to its normal population method (extraction, manual entry, predictive coding, etc.).

For PO Configuration:

  • This is how you define which header and line fields should be treated as PO‑driven beyond description and rate.

  • Example: For PO‑driven vendors, you might configure:

    • Entity: Allow Override with PO

    • Location: Allow Override with PO

    • Spend Category / Account: Allow Override with PO

    • Description: Allow Override with PO (if you selected “Take Description from the PO”)

7. How PO Configuration Works with PO Matching Logic

Once you’ve configured PO behavior, SmartVendor applies PO Matching Logic to link invoice lines to PO lines. In summary:

  1. SmartBot first validates that the extracted PO:

    • Exists in the SoR

    • Belongs to the same vendor as the vendor bill

    • Has open balance on at least one line

  2. It attempts to match lines using:

    • Description + Rate (goods lines)

    • Description + Amount (amount‑based / service lines)

    • Rate/amount only when description does not match

  3. Special cases handled include:

    • Multiple PO lines with same description or same rate

    • Single‑line (blanket) POs where all invoice lines map to the same PO line

    • Invoices with no PO or invalid PO (fall back to human review)

When PO Configuration is set correctly:

  • Description Override and Rate Override ensure that PO‑matched lines show the right values by default.

  • Max Decimal Allowed and auto calculation prevent rounding mismatches that could cause “Failed to Reconcile” when you click Write to SoR.

  • Require PO ensures that PO‑driven vendors cannot bypass matching rules accidentally.

8. Human Review and Recovery

Even with PO Configuration applied, some cases require AP analyst intervention:

Human review is required when:

  • No PO is found on the vendor bill

  • The extracted PO cannot be found in the SoR

  • The extracted PO belongs to a different vendor than the normalized vendor on the bill

  • The extracted PO is closed or has no remaining balance

Recovery options include:

  • Editing the PO Number on each line (selection list filtered to open POs for the same vendor)

  • Using the pencil icon next to PO Line Number to pick the correct PO line

  • Splitting invoice lines when multiple POs or PO lines are needed (one vendor bill line per PO line)

  • Correcting header and line coding, then reattempting Write to SoR

9. Best Practices for PO Configuration

  • Align with ERP configuration

    • Match Max Decimal Allowed to your ERP’s quantity/rate precision.

    • Mirror your ERP’s behavior for rate/amount calculations.

  • Use PO as source of truth for PO‑driven vendors

    • Set Require PO = Yes for these vendors.

    • Enable Description Override and Rate Override to take values from the PO.

    • Mark key coding fields as Allow Override with PO/Contract value.

  • Combine with Templates

    • Use SmartVendor Templates (SmartVendor > Settings > Templates) to fine‑tune which fields are PO‑driven and how many decimals each number field allows.

  • Monitor exceptions

    • Train AP analysts to watch for Failed to Reconcile statuses on the Documents tab and use the hover tooltip to understand and correct PO‑related errors.