A three-way match compares an invoice with the purchase order and the recorded receipt or service confirmation. The purpose is to determine whether supplier, item or service, quantity, price, and acceptance evidence agree within configured tolerances. Differences should follow an exception workflow; a match supports payment readiness but does not itself execute payment.
In plain English
It checks the invoice against both what was ordered and what was received.
Illustrative example
At Northstar Industrial Systems, finance compares a 100-unit invoice with the 100-unit order and the 96-unit accepted receipt, then routes the difference for resolution.
- Related terms
- Two-way match; Invoice matching; Goods receipt; Payment readiness
- Lifecycle stages
- Invoice; Reconcile
- Stakeholders
- Finance; Procurement; Operations; Supplier