What is a three-way match?

A three-way match checks a supplier’s invoice against the purchase order and the goods receipt before payment, so you pay only for what you ordered and actually received. If the three documents disagree beyond a set tolerance, the invoice is held until someone resolves it.

By the Strike SCF team · Updated 5 November 2026

How does a three-way match work?

1. Purchase order: what you agreed to buy, how many, and at what price.
2. Goods receipt: what actually arrived, recorded by whoever received it.
3. Invoice: what the supplier is charging.
4. The match: quantities and prices are compared line by line. Lines that agree go forward, and lines that do not are held.

What does an example look like?

What is the difference between two-way and three-way matching?

A two-way match compares only the order and the invoice, so it checks price and quantity but not delivery. Many companies use it for services, where there is no physical receipt. Three-way matching suits physical goods.

What is a tolerance?

A tolerance is how much difference you accept without stopping the invoice, such as 2% on price or a small rounding amount. Set it too tight and your team drowns in exceptions. Set it too loose and overcharges slip through. Many teams set it by category or supplier.

What causes most exceptions?

• Short or damaged deliveries.
• Prices that changed after the order was placed.
• Goods received but not recorded on time.
• Invoices that combine several orders.
• Part deliveries billed as if complete.

How does Strike SCF handle it?

In Procure-to-Pay, the order, the goods receipt and the invoice sit side by side, line by line. You set how much difference is too much, and part payments are recorded against the invoice. Once a match clears, the invoice can also be financed on the same record, as supply chain finance.