When you enable the Enable subcontractor vendor invoice matching to actuals for Project Operations integrated with ERP setting, you activate this feature.

Key capabilities:

This feature enables procurement managers, project accountants, and accounts payable users in finance and operations apps to efficiently identify, review, and match project actuals generated from subcontracting activities against incoming vendor invoices. By providing visibility into the underlying actual cost transactions, users can validate that the invoice accurately represents the work performed and the costs incurred before approving vendor invoice.
The capability supports invoice validation and exception management by allowing users to compare vendor invoice amounts with received services, posted actuals, and project cost data, instead of to all product receipts.
By establishing a direct relationship between vendor invoices and subcontracting actuals, the feature significantly reduces the need for manual reconciliation activities.
The feature streamlines the end-to-end subcontracting procure-to-pay process by creating a more connected workflow between procurement, project operations, and finance teams. Organizations can achieve faster invoice review and approval cycles, improve financial controls, increase transparency into subcontracting costs, and ensure that vendor payments are aligned with actual project consumption and contractual commitments.
In addition, having actuals available during invoice matching improves auditability and traceability. Finance teams can easily demonstrate how vendor invoice amounts were derived, what project transactions they relate to, and whether they fall within approved project and procurement budgets, thereby strengthening compliance and governance controls.