Three-way match
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is three-way match?
Three-way match is an accounts payable check that compares a supplier’s invoice with the purchase order and receiving record before the invoice is paid. If the item, quantity or price doesn’t agree across all three, the invoice is held for review.
How it works
Distributors meet three-way match from both sides. Their own accounts payable team matches supplier invoices against the distributor’s POs and receiving records, and their customers do the same with the distributor’s invoices, so a pricing or quantity error on an order turns into a late payment.
Three-way match example
The PO says 100 units at $4.80, receiving recorded 96, and the invoice bills 100 at $5.00. With both quantity and price off, the invoice waits for a corrected copy.
Related terms
- InvoiceAn invoice is the seller’s bill for goods or services delivered, listing the items, quantities, prices, freight, tax, payment terms and amount due.
- Purchase order (PO)A purchase order (PO) is a buyer’s document ordering specific items, in specific quantities and at stated prices, from a supplier.
- Receiving and putawayReceiving and putaway are the warehouse steps that bring a supplier’s delivery into stock and make it available to sell.
- Accounts payable (AP)Accounts payable (AP) is the money a company owes its suppliers for goods and services it has received but not yet paid for.
