3-Way Matching Explained: How an Invoice Is Checked Against the PO
Solution: AP automation
How it works
Three-way matching checks each supplier invoice against the purchase order and the goods receipt before it's paid. This is how an invoice is checked, and where Lleverage does the checking. The purchase order says what you agreed to buy, the goods receipt what actually arrived, and the invoice what the supplier bills you.
Line by line, the item, the quantity and the price have to agree, within the tolerance you set. Billing for more pieces than you ordered is refused outright, and the invoice waits for the supplier's credit note. A partial delivery is matched for what arrived, the line is marked Partly, and the rest stays open on the order.
When the invoice arrives before the receipt is booked, it waits for the warehouse to book it. A line outside tolerance goes to the buyer who placed the order, as a request in Lleverage, with the invoice PDF beside it. The buyer approves in full, approves the part received, or rejects it and returns it.
An AI agent reads each invoice in the supplier's own layout and matches every line three ways, and releasing the payment always stays with a person. Next for you: AP automation with AI. Find the links on this page.