Invoice matching checks a supplier invoice against related purchasing and receiving records before approval. Depending on the control, the invoice may be compared with a purchase order alone or with both the purchase order and evidence that the goods or services were received.
Quick reference for Invoice matching
| Check | What it means for the transaction |
|---|---|
| Category | Orders, invoicing, accounts payable and accounts receivable |
| Record to keep | Link the order, delivery evidence, invoice, approval, adjustment and payment reference that belong to the same transaction. |
| Do not infer | An approved invoice or recorded payment does not by itself prove that funds have settled or that the open balance is reconciled. |
Invoice matching and nearby terms
- Three-way matching: Three-way matching compares a purchase order, a goods receipt or service confirmation, and a supplier invoice before payment approval.
- Two-way matching: Two-way matching compares a supplier invoice with its purchase order.
Trade finance connections
A completed match can provide part of the evidence needed for approved payables finance or reverse factoring. Approval controls still need to address duplicate and disputed invoices.
