3-Way matching in accounts payable: real-world use cases

Are your accounts payable processes under pressure to be faster, more accurate, and fully compliant with financial regulations? If so, 3-way matching in accounts payable is one of the most critical internal controls your finance team should leverage.  

This practice is vital for detecting discrepancies, preventing invoice fraud, and maintaining procurement accuracy. But theory aside, what does it look like in practice? 

In this blog, we explore how 3-way matching is applied across different industries, what common challenges AP teams face, and how automation can transform the matching process. We’ll also show how Cevinio’s enhances 3-way matching in accounts payable.

3-way matching in accounts payable, a brief definition

3-way matching is a process used in accounts payable to verify that a supplier invoice matches both the purchase order (PO) and the receiving report to ensure you're paying only for goods and services that were ordered, delivered, and invoiced correctly. If all three documents align in terms of quantity, price, and vendor, the invoice is cleared for payment. 

For finance leaders and AP managers, 3-way matching work as a financial safeguard: 

• Prevents overpayments and fraud 

• Ensures vendor contract compliance 

• Supports audit readiness 

• Reduces costly errors and disputes 

• Builds vendor trust through accurate payments 

In industries with complex supply chains, this process can be the difference between seamless operations and costly disputes

Core use cases of 3-way matching in accounts payable

Case 1: Manufacturing and

Where the issue starts: Goods Receipt (GRN) 

Case description: In manufacturing, weight-based materials like steel rarely arrive in the exact quantities ordered. A PO for 10 tons might result in 9.8 tons delivered due to common scale variances or handling loss. The supplier invoices based on the PO, 10 tons, while the actual goods received reflect less. That creates a GRN mismatch and blocks payment. 

Without automation, AP must dig into warehouse receipts, compare them line by line with the PO and invoice, and contact the supplier for a credit note. This process is slow, resource-heavy, and error-prone, especially when multiple sites and material types are involved. 

Cevinio brings automation to the reconciliation process. Our AP Automation software seamlessly compares delivery receipts against both purchase orders and invoices, automatically flagging mismatches that fall outside your defined tolerance thresholds. These discrepancies are routed to the appropriate team member, with automated reminders sent until the issue is resolved. This not only safeguards your working capital but also keeps your teams focused on throughput rather than troubleshooting.

Case 2: Retail

Where the issue starts: Purchase Order 

Case description: Retailers often order centrally but receive goods across multiple locations. A PO for 500 units across 10 SKUs might be split across several stores, each logging partial deliveries. If the original PO was inaccurate or not updated for substitutions, quantity changes, or split shipments, it no longer reflects what was fulfilled, even if the deliveries and invoice are correct. 

Without automation, when AP teams encounter a PO mismatch, they must manually cross-check documents and coordinate with procurement and local sites to clarify what was intended versus what was delivered. 

Cevinio brings automation to the PO matching process. It intelligently detects when a purchase order doesn’t align with actual receiving patterns or invoiced amounts. By consolidating delivery confirmations across multiple locations and clearly highlighting PO exceptions, Cevinio enables faster, more efficient resolution. The result? No more manual chasing, just confident, compliant payments.

Case 3: Logistics and freight services

Where the issue starts: Invoice 

Case description: Logistics providers often bill based on contracted rates per kilometer or hour. A contract (PO) may set the price per kilometer, and the delivery log confirms the service. But if the invoice inflates the distance, say, claiming 2,000 km instead of the 1,850 km logged, the mismatch starts with the invoice itself. 

Without automation, AP must manually compare the invoice to both the PO and the service log. With dozens or hundreds of these invoices a week, this process drains AP resources and opens the door to overpayment, strained carrier relationships, and margin erosion. 

Cevinio brings automation to the invoice validation process. With invoice-level validation, Cevinio automatically checks claimed amounts against agreed terms and actual service data, surfacing overcharges with detailed variance insights. This empowers AP teams to act quickly and flag errors back to suppliers, no digging, and no guesswork. If an invoice is rejected, our AP automation software immediately notifies the supplier, clearly stating the reason for the rejection.

Quick recap: challenges in manual 3-way matching 

AP teams juggle ERPs, emails, and spreadsheets while chasing documents, correcting data errors, and resolving mismatches across departments. Supplier follow-ups add to the delays, and the inefficiencies stack up. 

Are these challenges a bit too familiar? 

• Slow and tedious: Manual checks across POs, receipts, and invoices take time. 

• Error-prone: High risk of data entry mistakes and mismatches. 

• Low visibility: Disconnected systems make tracking difficult. 

• Delayed payments: Discrepancy resolution slows down cycles. 

• Audit risks: Poor documentation threatens compliance. 

• Hard to scale: More volume means more manual effort. 

The result: late payments, strained vendor relationships, and higher AP workload. 

Best practices for Accounts Payable leaders to improve 3-way matching 

If you're looking to optimize your 3-way matching process and reduce invoice exceptions, here are five proven best practices for AP teams: 

• Centralize and digitize AP documents: Ensure purchase orders, supplier invoices, and goods receipts are stored in a centralized and digitalized across connected systems. This improves accessibility, traceability, and audit readiness. 

• Set clear invoice matching tolerances: Define variance thresholds (e.g., 2–5%) to avoid unnecessary holds for minor discrepancies, especially useful for weight-based or unit-priced goods. 

• Apply strict controls for high-risk suppliers: Identify high-value or high-risk vendors and enforce tighter 3-way match rules to protect against overbilling, fraud, or compliance gaps. 

• Integrate procurement and supply chain in your AP workflows: Streamline collaboration between procurement, supply chain and accounts payable to ensure alignment on PO accuracy, delivery tracking, and invoice approvals. 

• Use AP Automation to scale efficiently: Invest in automated 3-way matching tools like Cevinio to reduce manual work, improve accuracy, and handle invoice volume growth without increasing headcount. 

By following these AP best practices and leveraging automation, finance teams can increase control, improve supplier relationships, and reduce the cost of invoice processing. 

How Cevinio enhances 3-way matching 

Cevinio goes beyond basic AP Invoice Automation by combining intelligent matching with deep exception handling and powerful integration. It captures data across formats, matches documents even with tolerances and partial deliveries, and routes discrepancies with full context. 

What sets Cevinio apart: 

• Line-level smart matching across multi-SKU, multi-location invoices, even with missing or inconsistent PO references. 

• Automated rejection and escalation logic, including supplier and internal notifications with clear reasons, no manual follow-ups. 

• Granular, role-based workflows for exceptions, tailored by entity, region, or spend threshold. 

With Cevinio, AP teams gain control, speed, and accuracy, without compromising compliance or vendor relationships. 

Conclusion 

In an age where finance is expected to do more with less, 3-way matching it’s a strategic lever for control and credibility. 

By understanding its use cases and pairing it with intelligent automation, AP leaders can ensure accurate, compliant, and scalable invoice processing that supports growth. 

Have a different use case? Let’s talk. Our AP invoice automation platform adapts to your unique workflows, whether you're dealing with complex procurement processes, multiple entities, or high transaction volumes.