Head of Finance Solutions
Three-way matching is the accounts-payable control of comparing three documents before paying a supplier: the purchase order (what you agreed), the goods receipt (what arrived), and the invoice (what you're billed). Only when all three match is payment approved.
A purchase order sets the agreement: products, quantities, prices. A goods-received note records what actually arrived, generated when warehouse receives stock. An invoice is the supplier's bill. The match checks that the bill reflects the agreement and the reality.
When an invoice arrives, compare it line by line against the PO and the receipt: quantity (did we order and receive this much?), price (does it match the agreed price?), and totals.
If quantities or prices differ, the invoice is held and flagged for review rather than paid.
Invoices paid on trust are where money leaks: double billing, inflated quantities, or unauthorised prices. Three-way matching catches these before cash leaves your account.
Purchase orders are approved before sending, receiving creates goods receipts and updates stock, and supplier invoices can be matched against the PO and receipt. The control happens automatically instead of relying on a tired accountant at month end.
Comparing the purchase order, goods receipt, and supplier invoice before payment to ensure quantities and prices align.
Comparing just the purchase order and the invoice, without the goods receipt. Useful for services where there's no physical delivery.
It catches double billing, inflated quantities, and unauthorised prices before payment is made.
Whenever quantity, price, or totals differ from the PO or goods receipt. Resolve with the supplier before paying.
Yes. Retten Work matches supplier invoices to POs and receipts automatically and flags exceptions.
