Three-Way Matching
Also known as: 3-way match
Three-way matching is a control that checks the purchase order, goods received note and supplier invoice agree before an invoice is paid.
Before releasing payment, the process compares three documents: what was ordered (the PO), what was actually received (the goods received note), and what the supplier is billing (the invoice). Only when quantities and prices match across all three is the invoice approved for payment.
Three-way matching prevents overpayment, catches billing errors and blocks fraudulent or duplicate invoices. Automating the match — so the system flags only exceptions for human review — removes a large amount of manual accounts-payable work.
Frequently asked questions
- What is three-way matching?
- Three-way matching verifies that the purchase order, goods received note and invoice all agree on quantity and price before an invoice is paid, preventing errors and fraud.
- What three documents are matched?
- The purchase order (what was ordered), the goods received note (what was received) and the supplier invoice (what is being billed).
Related terms
Purchase Order (PO)
A purchase order (PO) is the official document a buyer sends to a supplier to confirm the order of goods or services at agreed prices and terms.
Read definitionGoods Received Note (GRN)
A goods received note (GRN) is a document recording the goods actually delivered against a purchase order, used to confirm receipt before payment.
Read definitionInvoice Matching
Invoice matching is the process of checking a supplier's invoice against the related purchase order and receipt before approving it for payment.
Read definitionPurchase Order Number
A purchase order number is the unique reference assigned to each purchase order so it can be tracked across ordering, delivery and payment.
Read definitionExplore related across the knowledge graph
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