3-Way Matching

Three-way matching is the core verification engine in the Invoice Processing Unit. It compares every supplier invoice against the original Purchase Order (what was agreed) and the Goods Receipt Note (what was actually received) to ensure you only pay for what was ordered at the agreed price and actually delivered.

What Would You Like to Do?

Task	Description
How 3-Way Matching Works	Understand the matching formula, score calculation, and decision logic
Handle Match Failures	What to do when an invoice has variances or doesn't match
Matching Field Reference	Every field on the Match Result form explained
Matching FAQ & Troubleshooting	Common questions, error messages, and solutions

How Matching Fits the IPU Flow

Invoice Inbox (OCR complete)
        ↓
   IPU Record Created
        ↓
┌─────────────────────────────┐
│   3-WAY MATCHING ENGINE     │
│                             │
│  PO (ordered) ←→ Invoice   │
│  GRN (received) ←→ Invoice │
│  PO ←→ GRN (cross-check)   │
└─────────────────────────────┘
        ↓
   Match Score Calculated
        ↓
   Decision: Auto-Approve / Review / Reject
        ↓
   Purchase Invoice Created (if approved)

What Gets Compared

The matching engine checks three categories of data across all three documents:

Category	What Is Compared	Example Variance
Quantity	Units ordered (PO) vs. units received (GRN) vs. units invoiced	Ordered 100, received 98, invoiced 100
Price	Agreed rate (PO) vs. invoiced rate	PO rate ₹50/unit, invoice rate ₹52/unit
Value	Total amounts across all three documents including taxes	PO total ₹5,000, Invoice total ₹5,200

Each category produces a component score, and the combined result determines the overall match score and decision.

Common Scenarios

Scenario	What to Read
Want to understand the match score percentage	How 3-Way Matching Works
Invoice has a quantity variance	Handle Match Failures
Invoice was auto-approved and you want to know why	How 3-Way Matching Works
Need to understand the Match Result form	Matching Field Reference
Match is stuck or showing an error	Matching FAQ & Troubleshooting

Related Pages

• IPU Overview — The complete Invoice Processing Unit guide
• Invoice Intake — How invoices enter the system before matching
• Purchase Order — The "ordered" document in 3-way matching
• Goods Receipt Note — The "received" document in 3-way matching
• Purchase Invoice — Created after successful matching and approval