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      PO Types: What's the difference?

      An Explanation of 2-way vs 3-way Purchase Orders, and how they affect the workflow in Nimbello

      Nimbello Automation Saves You Time with PO Matching

      A huge benefit of Nimbello is that the majority of your invoices should be handled by Nimbello's automation, with only a small fraction requiring manual review due to discrepancies.  To that end, it might be a good idea to consider the PO options available to you to leverage Nimbello's automation fully and save even more time.

      Does Your ERP System Support Multiple PO Types?

      Your ERP system may primarily handle a single type of purchase order, but some systems can support multiple PO types. Let’s break this down to help you decide if switching PO types can enhance your business processes.

      What’s the Difference Between 2-Way and 3-Way POs?

      2-Way Match (PO Type 2)

      This method compares two key documents: the PO and the Invoice.

      • The invoice line items are compared to the corresponding PO line items.
      • Nimbello flags discrepancies for manual review in Hold PO Status.


      3-Way Match (PO Type 3)

      This process adds a third layer: Receipt Data, ensuring products are received before payment is issued.

      • Matches the invoice and PO in the same way as 2-way matching.

      • Verifies receipt data to confirm that all ordered items were delivered.

      • If there are any discrepancies in quantity ordered vs. quantity received, Nimbello will move the invoice to "Hold PO Status." for manual review


      So which type should I use?

      For both 2-way and 3-way PO invoices, if all the data matches, your invoices can export to your ERP automatically without any need for manual intervention.  That is how it should be for the majority of transactions so that you only need to spend time manually reviewing a small portion of invoices.  Because many invoices are expected to export automatically, you can help ensure accuracy by utilizing 3-way matching when applicable.

      2-Way PO Matching

      • Use for: Simple purchases like subscriptions or services.

      • Why: Delivery tracking isn’t necessary for these transactions since there is no physical product to be delivered.

      3-Way PO Matching

      • Use for: Physical goods or materials requiring delivery confirmation.

      • Why: Ensures payment is issued only after verifying delivery.

      Optimize Your Process with Configurable Rules

      Want to fine-tune the rules for each PO type? Nimbello allows customization to suit your needs. For guidance with optimizing your process, contact Nimbello Support, and we’ll help you create the perfect workflow for your business.