UNDERSTAND THE CONCEPT
Three-way matching compares a supplier invoice with the purchase order and the receipt record. The purchase order establishes the commercial commitment, the receipt records delivered quantity, and the invoice requests payment. Matching rules typically check quantities and prices within approved tolerances. Passing a match is useful evidence, but it does not by itself establish that every quality requirement has been satisfied; some processes use an additional acceptance check.
Treat mismatches as questions to resolve, not merely blocks to remove. A discrepancy may reflect a partial delivery, an incorrect unit conversion, a missing receipt or a genuine overcharge. Preserve the original records and document the correction or approved exception. Do not create a fictitious receipt just to make an invoice pass. For services, define the evidence of completion and acceptance before the work starts so the approver has a meaningful equivalent of a goods receipt.
Questions to take back to your team
- Are price and quantity tolerances explicitly approved?
- Does the receipt represent actual delivery or accepted service?
- Is each exception resolved with traceable evidence?
Further reading
Explore the primary references below. Requirements and applicability depend on your organization and jurisdiction.
