Control/ Purchasing and Receiving option

Suppliers: Control Region
(N) Suppliers—>Entry (B) Open

You can prevent payment of multiple supplier invoices by applying a hold to the supplier rather than on each individual invoice. There are several types of supplier related holds that you can select for a supplier.
1 Invoice Amount Limit: If you enter an invoice that exceeds the invoice amount limit specified in this field, Oracle Payables applies an Amount hold to the invoice during approval.
2 By selecting the Hold All Payments check box, you prevent the supplier from being selected for payment during a payment batch or for a Quick payment.
3 By selecting the Hold Unmatched Invoices check box, you do not match an invoice to a purchase order (and instead enter distributions manually or with a distribution set), Oracle Payables places a Matching Required hold on the invoice during approval.
4 By selecting the Hold Future Invoices check box, Oracle Payables automatically applies a Supplier hold to all new invoices entered for the supplier. However, you can pay invoices that were entered before selecting this option.
5 In the Hold Reason field, specify the reason that you are applying an invoice hold to invoices
6. Select the Invoice Match Option
IMO(Invoice Match Option) determines for which transaction(a PO/receipt) you are making an invoice. When you create an invoice and validates it the system ‘ll check the invoice details with the PO/Receipt details as mentioned in the IMO.
The details verified are supplier information, qty, price etc.

MAL(Match Approval Level) is used in receiving option. The available options are
2-way matching
This verifies that Purchase order and invoice information match within your tolerances as follows and check following:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
3-way matching
This verifies that the receipt and invoice information match with the quantity tolerances defined and check following:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received
4-way matching
This verifies that acceptance documents and invoice information match within the quantity tolerances defined and check following:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received
Quantity billed <= Quantity accepted

The Invoice Match Option and the Match Approval Level are independent options. You can perform whichever Invoice Match Option you want regardless of the Match Approval Level.
For example, you can set a PO to any one of the following examples:
#1 - PO#5049 - 2-way/Purchase Order
#2 - PO#5050 - 2-way/Receipt
#3 - PO#5051 - 3 way/Purchase Order
#4 - PO#5052 - 3 way/Receipt

The Invoice Match Option determines what document you can match the invoice two. In #2 & #4 If I do not create a Receipt for these POs and try to match to the PO number, the system will not allow me to. It will give me a

APP-SQLAP-10655: You cannot match to this document

You can match only to the document (purchase order or receipt) specified by the Invoice Match option on the purchase order shipment. Either match to the specified document, or update the Invoice Match option for the shipment and then complete this match.
The Match Approval Level determines what if any type of hold will be placed based on the Invoice Tolerance setup.

So let's say we create a PO like #3 PO#5051 - 3 way/Purchase Order, however, we do not receive the PO. In this case we will receive a qty hold because we have the PO set to 3 way matching.  Purchase order, receipt, and invoice quantities must match within tolerance before the corresponding invoice can be paid.

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules