What is a Three-way match?
Three-way match checks that a supplier invoice agrees with both the purchase order and the goods receipt before payment, confirming that what was ordered, received and billed line up.
In more detail
The three documents answer three questions. The PO says what you agreed to buy and at what price. The goods receipt note says what actually arrived. The invoice says what the supplier wants paid. The system compares quantities, unit prices and totals within tolerances you set, for example 2 percent or $50. A pass can go to payment, and a fail goes to review. The control stops you paying for goods that never arrived or were overcharged. The pain comes from mismatches caused by partial deliveries, unit-of-measure differences and late receipts. Automation helps by reading the documents and chasing the missing one, while tolerances and approvals stay human decisions.
Example
A PO is for 100 units at $12. The warehouse receives 80, and the invoice bills 100. The match fails on quantity, and the buyer is asked whether to wait for the other 20 or short-pay.