---
title: "Three-way match"
description: "What is three-way match? An AP control that checks a supplier invoice against the PO and the goods receipt before payment. Learn how tolerances work."
url: https://1flux.ai/glossary/three-way-match
last_updated: 2026-10-11
---

[Procurement and inventory](https://1flux.ai/glossary#procurement-and-inventory)

# Three-way match

What is three-way match, and what happens when the order, the receipt and the invoice disagree?

Glossary Updated 11 October 2026

Definition

Three-way match is an accounts payable control that checks a supplier invoice against the purchase order and the goods receipt before the invoice is approved for payment.

## What is three-way match used for?

The PO confirms what was agreed, the receipt confirms what arrived and the invoice says what the supplier wants paid. If quantities or prices differ by more than a set tolerance, the invoice is held for review. This stops a business paying for goods it never received or at prices it never agreed.

An invoice that fails the match

Example

- Purchase order

  100 units at USD 50

- Goods receipt

  96 units

- Supplier invoice

  100 units at USD 52

Result

Held

The invoice fails on quantity (100 billed, 96 received) and on price (USD 52 against USD 50 agreed).

Two-way match skips the receipt; four-way match adds an inspection step. The checks happen before the [purchase invoice](https://1flux.ai/glossary/purchase-invoice) is approved.

In 1flux

1flux uses receipt-based invoicing: purchase invoices are built from posted goods receipt reports and priced against the order, and any price difference needs a reason and posts to [invoice price variance](https://1flux.ai/glossary/invoice-price-variance). [Read the procure-to-pay guide](https://1flux.ai/guides/procure-to-pay)

Related

## Keep exploring

### [Purchase invoice](https://1flux.ai/glossary/purchase-invoice)

A supplier's bill as recorded in your books.

### [Goods receipt report](https://1flux.ai/glossary/goods-receipt-report)

The document that accepts received goods into stock and the books.

### [Invoice price variance](https://1flux.ai/glossary/invoice-price-variance)

The gap between a supplier's invoice price and the PO price.

### [Procure-to-pay guide](https://1flux.ai/guides/procure-to-pay)

Eleven steps from requisition to supplier payment, with the documents, controls, accounting, KPIs and a checklist.

Last updated 11 October 2026