All 21 Purchase Orders & 3-Way Matching questions
More in Purchase Orders & 3-Way Matching
What is a purchase order (PO)? What is the difference between two-way, three-way, and four-way matching? What is a goods receipt note (GRN)? What is a requisition and how does it relate to a PO? What information does a purchase order typically contain? What is a contract or catalog PO versus a spot PO? What is matching tolerance and why is it used? What are common causes of a three-way match failure? How are partial deliveries and partial invoices matched against a PO? What is a blanket (standing) purchase order?
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Accounts Payable & Receivable › Purchase Orders & 3-Way Matching

What is three-way matching?

Beginner

Answer

Three-way matching compares three documents before an invoice is paid: the purchase order (what was ordered), the goods receipt note (what was received), and the supplier invoice (what is billed). If quantity and price agree across all three within tolerance, the invoice is approved; discrepancies raise an exception.
PO: 100 units @ $25 = 2,500
GRN: 100 units received
Invoice: 100 units @ $25 = 2,500  -> match, approve for payment
Real-world example An invoice passes three-way match automatically because the PO, receipt, and invoice all show 100 units at $25.

Common follow-ups: What is two-way and four-way matching? | What happens on a mismatch?

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All 21 Purchase Orders & 3-Way Matching questions