Three-Way Matching

Three-Way Matching is a control procedure that compares purchase orders, receiving documents, and supplier invoices to ensure payment accuracy and prevent fraud. This verification process confirms alignment across three key transaction documents before payment authorization.

The three documents compared are:

• Purchase Order (PO): What was ordered, quantities, and agreed prices
• Goods Receipt Note (GRN): What was actually received
• Supplier Invoice: What the supplier is billing for

Automated procurement systems perform three-way matching electronically, flagging discrepancies for review while automatically processing matched invoices for payment. This automation reduces processing costs, captures early payment discounts, and strengthens financial controls.