Quick Guide on 3 - way match for Startups..

The 3-Way Match is one of the most important controls in procurement and accounts payable. It makes sure companies only pay for what was actually ordered and received — nothing more, nothing less.

In this deck, we break down:

What the 3-way match really is

How POs, Receipts, and Invoices fit together

Why it matters for finance accuracy and compliance

Common pitfalls companies face when they skip it

If you’re a CFO, CPO, or finance leader, this guide will help you strengthen controls, reduce risk, and simplify audits — without drowning in jargon

1. Explained...
3 way match
The Procurement
Operating Model
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2. The Procurement
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The offer document sent by buying
company to a single vendor,
confirming their commitment to buy
the product or service.
Not Legally Binding Until the
Vendor Accepts.
Purchase Order

3. The Procurement
Operating Model
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Document created by buying
company to a single delivery event,
confirming their receipt of the
product or service.
Whilst not a payment document
Receipt creates a Accrual i.e a
Commitment for Payment to vendors
Receipt

4. The Procurement
Operating Model
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Payment Request sent by single
vendor to the buying company
against a specific or multiple
delivery events.
Best Practice is to follow one to one
mapping i.e. 1 Invoice against a specific
delivery
Invoice (AP)

5. The Procurement
Operating Model
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All 3 documents i.e. PO, Receipts &
Invoice should match with each other.
This creates a obligation for payment
to the buying company
I.e. If PO is for 100 Laptops, Receipt & Invoice should
also be for 100 Laptops.
The Match

6. The Procurement
Operating Model
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About 10-15% of Invoices do not
match, creating an exception.
This will go through a human review
and approval.
I.e. If PO is for 100 Laptops, if receipt or invoice is for
110 that triggers a exception.
The Exception

7. The Procurement
Operating Model
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About 1-2% of Invoices have a very
minimal exception value. That doesn’t
justify the review and approval time &
costs involved, therefore is ignored
I.e. If PO is for 100 mobile chargers, if receipt or
invoice is for 101. The extra 1 charger can be ignored
and paid for - in the interest of time and cost.
The Tolerance

8. The Procurement
Operating Model
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About 0.5% of Invoices go through a
dispute. i.e. buyer doesn’t agree on the
invoice sent by the vendor
The dispute resolution is mostly offline and quick
However in case of higher value it can go through
arbitration process
The Dispute

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