A 3-way match in accounts payable is the process of verifying that three documents agree before a vendor invoice is approved for payment. The three documents are: the purchase order — what the company agreed to buy and at what price; the goods receipt or delivery confirmation — what the company actually received; and the vendor invoice — what the vendor is charging. All three must agree on quantity, price, and terms before payment is authorized.
Why All Three Documents Must Match
The purchase order establishes what was ordered and the agreed price. Without comparing the invoice to the PO, a vendor could charge for items that were never ordered, at prices that were never agreed to, or in quantities that exceed what was purchased. The goods receipt confirms what was actually delivered. Without comparing the invoice to the goods receipt, payment could be made for items that were ordered but never arrived — an overpayment for goods never received.
What Happens When They Do Not Match
When the three documents do not agree, the AP team has a discrepancy to resolve. The invoice amount exceeds the PO amount — why? The invoice quantity is higher than the goods receipt — were those additional items delivered but not recorded, or is the vendor invoicing for undelivered goods? These discrepancies require investigation, vendor communication, and often approval from a manager or CFO before payment is released or disputed.
How AI Automates the Match
The Accounts Payable 3-Way Match AI Agent reads the PO, goods receipt, and vendor invoice simultaneously — comparing quantities, prices, and terms across all three documents and producing a match result in seconds. Clean matches are auto-approved and queued for payment. Discrepancies are flagged with the specific mismatch identified and routed to the appropriate approver with full context.