Three-Way Match
Definition
An accounts-payable control that requires a supplier invoice to match an authorised purchase order and a goods receipt note before payment is released. The match is designed to verify that goods or services were ordered, received, and correctly priced before money leaves the organisation.
- Documents matched
- Purchase order, goods receipt note, supplier invoice
- Domain
- Accounts payable, procure-to-pay controls
- Checks
- Item, quantity and price agree across all three
- Fraud it blocks
- Payment for goods never ordered or never received
Common questions
How do fraudsters get around a three-way match?+
Common methods include colluding with a receiving clerk to file a false goods receipt note, splitting a large purchase into several below-approval-limit orders, or setting up a fictitious vendor whose invoices are approved by the same person who created the purchase order.
What is a two-way match and why is it weaker?+
A two-way match compares only the invoice to the purchase order, without confirming goods were actually received. It approves payment on paperwork alone, so it cannot catch invoices for items that were never delivered.
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