Understanding 3-way matching in invoice processing?

3-way matching is an accounts payable control process that verifies invoice accuracy by comparing three documents before payment: (1) Purchase Order (PO) -...

📄Invoice Processing Basics
InvoiceParse Team
1 min read
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# What is 3-way matching in invoice processing? 3-way matching is an accounts payable control process that verifies invoice accuracy by comparing three documents before payment: (1) Purchase Order (PO) - what was ordered and approved to buy; (2) Receipt/Delivery Note - what was actually received and accepted; (3) Invoice - what the supplier is charging. The system checks that quantities, prices, and totals match across all three documents within acceptable tolerances. If everything matches, the invoice is approved for payment. Discrepancies trigger exception workflows for investigation. 3-way matching prevents overpayment, catches invoicing errors, reduces fraud risk, and ensures you only pay for what was actually received. Automated systems perform 3-way matching in seconds using business rules and thresholds. ## Key Takeaways - 3-way matching is an accounts payable control process that verifies invoice accuracy by comparing three documents before payment: (1) Purchase Order (PO) - what was ordered and approved to buy; (2) Receipt/Delivery Note - what was actually received and accepted; (3) Invoice - what the supplier is charging. - The system checks that quantities, prices, and totals match across all three documents within acceptable tolerances. - If everything matches, the invoice is approved for payment. ## Related Topics - 3-way matching - three-way matching - invoice matching - PO matching

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