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.