What is a 3-Way Match?

The 3-Way Match is a key control process in procurement and finance that compares three core documents before a supplier invoice is approved for payment:

• Purchase Order (PO)
• Goods Receipt / Delivery Note (Receiving Report)
• Invoice

By aligning these documents, the 3-way match ensures that the correct goods have been delivered in the right quantity, at the agreed price, and under the contractual terms before releasing payment.

Why Is 3-Way Matching Important?

3-way matching helps organizations:

• Prevent overpayments or duplicate payments
• Detect fraud or invoicing errors
• Ensure contract compliance
• Improve financial accuracy and auditability
• Strengthen the connection between procurement and finance

In industries with high purchase volumes or strict compliance standards, 3-way matching is a foundational control mechanism.

How Does the 3-Way Match Work?

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If all three match within predefined tolerances, the invoice is approved for payment. If not, the system flags a discrepancy for manual review.

Common Matching Scenarios

Extensions: 2-Way and 4-Way Match

• 2-Way Match: Only PO and Invoice (used for services or where receiving is not tracked)
• 4-Way Match: Adds inspection reports or quality control (used in pharma, manufacturing)

Benefits of 3-Way Matching

3-Way Match in Digital Procurement

Modern e-procurement systems automate large parts of the 3-way match using workflows, tolerance rules, and integration with ERP systems.

Procurement Platforms support:

• Automated matching of PO, delivery, and invoice data
• Custom tolerance limits for price/quantity variations
• Exception management with approval workflows
• Full audit trails and exportable records

Reduce friction between procurement and finance with a digital 3-way match in Mercanis.

Conclusion: Control, Transparency, Compliance

The 3-Way Match is an essential safeguard in the procure-to-pay (P2P) process. It aligns procurement, receiving, and finance to ensure that your company only pays for what it actually ordered and received, no more, no less.