Three-Way Match
A foundational internal control in the procure-to-pay cycle.
Definition
The three-way match compares three documents — purchase order (PO), goods receipt (GR), and supplier invoice — on price, quantity and item. An invoice is released for payment only when all three agree within defined tolerances; otherwise it is routed to an exception (mismatch) for resolution. A two-way match omits the receipt; a four-way match adds the quality-inspection report.
Origin
An internal-control practice codified in audit literature (COSO Internal Control – Integrated Framework, AICPA) and implemented natively in the Accounts Payable modules of ERPs (SAP MM/FI, Oracle, Coupa).
Example in context
Invoice for 1,000 units at $2.00 against a PO of 1,000 at $2.00 and a GR of 980 received: a quantity variance of 20 units beyond tolerance > the invoice is held as an exception for resolution.