Why match three documents?
Each document is written by a different party and says something different:
- The purchase order says what you agreed to buy and at what price.
- The goods received note says what your own staff saw arrive.
- The invoice says what the supplier wants to be paid.
If all three agree, you can pay with confidence. If one is out of line, you may be about to pay for goods you did not receive, or at a price you did not agree. The match turns a vague “this looks fine” into a clear yes or no.
What do you compare?
| Check | Order | Receipt | Invoice |
|---|---|---|---|
| Supplier | Named | Named | Same name and details |
| Items | Ordered | Delivered and accepted | Billed |
| Quantity | Ordered | Accepted | Billed (should not exceed accepted) |
| Unit price | Agreed | Not applicable | Should match the order |
| Total, tax, delivery | Expected | Not applicable | Should match the order terms |
The key rule: never pay for more than was accepted, and never pay at more than the agreed price.
How do you run the match?
- Gather the three documents for one purchase. A missing document stops the process until it is found.
- Check the references. The invoice should quote the purchase order number.
- Compare quantities. Billed quantity must not exceed accepted quantity.
- Compare prices. Unit prices must equal the order, unless an amendment was approved.
- Check the arithmetic and tax. Recalculate totals yourself.
- Check for duplicates. Search whether the same invoice number was already paid.
- Record the result. Matched, matched within tolerance, or not matched, with a note.
Only then should the payment request go to an approver. The earlier records come from purchase orders and the goods received note.
What do you do when they do not match?
Most mismatches have a simple cause. Work through them in order:
- Invoice quantity higher than received. Pay for the accepted quantity only, and ask the supplier for a corrected invoice or a credit note.
- Price different from the order. Ask the buyer if an amendment was agreed. If not, query the supplier.
- Goods received but no invoice match. Check if the delivery was split across several invoices.
- Invoice but no receipt. Ask the receiving officer. Do not pay until the goods are confirmed.
- Duplicate invoice number. Stop and investigate before any payment.
Write each outcome on the file. A pattern of mismatches from one supplier belongs on its vendor scorecard.
What can the match not do?
A match proves that documents agree. It does not prove that the goods were needed, that the price was fair, or that nobody colluded. Those controls sit earlier: approval limits, quotations and independent receiving. The three-way match is one layer, not the whole defence.
Also, if a supplier and a receiving officer work together to fake a receipt, the documents will still agree. Rotate receiving staff and do occasional physical checks, as described in our article on physical stock counts.
A short example. A purchase order is for 100 jerry cans at 5 each, total 500. The goods received note shows 90 accepted and 10 rejected for leaks. The invoice bills 100 cans at 5, total 500. The three documents do not agree. The finance officer pays for 90, which is 450, and asks the supplier for a credit note for the other 50. She records the reason in the file. A simple two-way match of order and invoice would have passed this invoice.
How should you handle partial deliveries and several invoices? Keep one running record per order: quantity ordered, quantity received to date, quantity billed to date. Each new invoice is checked against what has been received and not yet billed. This prevents paying twice for the same units.
What about services? Replace the goods received note with a signed confirmation that the work was done. The match then compares the contract or order, the confirmation and the invoice, in the same way.
How often should you review the pattern? Once a quarter, list the invoices that failed the match and the reason for each. If one supplier, one buyer or one store appears often, look closer. If the same type of error repeats, such as wrong unit prices, fix the cause, perhaps by sending suppliers the agreed price list. The aim is fewer mismatches over time, not only catching them one by one.
Where EMPOBase fits
EMPOBase keeps the requisition, the purchase order, the goods receipt and the payment approval together under one project. Goods receipts highlight differences that need your team’s attention, and the person who raised a request cannot approve it. The comparison itself is a review step for your approver; this article does not claim that EMPOBase matches documents automatically. EMPOBase does not make bank transfers or record proof of payment. See the procure-to-pay workflow for the chain.