Three-way match
A three-way match is the process of comparing a purchase order, a goods receipt, and a supplier invoice before approving payment. If all three agree (same quantities, same prices, same terms) the invoice gets paid. If they don't, someone needs to investigate.
Part of the Procurement Glossary
How it works in practice
AP (accounts payable) receives an invoice from a supplier. Before paying, they check: Does the PO exist? Were the goods actually received? Do the quantities and prices match? If yes on all three, payment is approved.
As a production buyer, your role in the three-way match is the receipt. If receipt data is wrong or missing (parts received but not logged, partial receipt not tracked, quantities off) the three-way match fails and the invoice gets held. That creates friction with the supplier and extra work for AP.
The more reliable your receipt tracking, the smoother the three-way match process. And the smoother it is, the fewer invoice disputes end up on your desk.
Why it matters
For buyers, the three-way match matters because receipt accuracy is your responsibility. If parts arrived but weren't received in the ERP, the match fails. If a partial shipment was received but only the full quantity was logged, the match fails.
Invoice disputes that stem from receipt tracking issues come back to the buyer. Getting receipts right, especially for partial shipments, prevents these downstream problems.
Tips
Log receipts promptly
The longer a receipt sits unlogged in the ERP, the more likely the three-way match will fail when the invoice arrives. Same-day receipt logging is ideal.
Track partial receipts carefully
Partial shipments are where three-way matches most commonly break. Make sure the receipt reflects exactly what arrived, not the full PO quantity.
How PO-Relay helps
PO-Relay detects receipts from your ERP daily. Full receipts close the loop. Partial receipts keep the loop open for the remaining quantity and flag the partial receipt, especially if the split wasn't communicated in advance.
By keeping receipt tracking accurate and flagging discrepancies early, PO-Relay helps prevent the downstream invoice disputes that come from mismatched receipt data.