What is Three-way matching?
Three-way matching is an accounts payable control that compares a supplier invoice against the purchase order and the goods receipt before payment is approved. If quantities, prices or items do not agree within set tolerances, the invoice is held for review.
Why it matters for your business
It prevents paying for goods that were never ordered or received, or at the wrong price, and it is a common step to automate in ERP and payables workflows.
An invoice bills for 100 units, but the warehouse received only 90, so the system flags the difference and holds the invoice until purchasing confirms with the supplier.