PO matching compares a supplier invoice with the approved purchase order and, when required, receipt or service evidence. The control checks that the billed item, quantity, price, currency and terms agree with what was ordered and received before the invoice is approved for payment.
What records are compared?
Two-way matching compares the invoice with the PO. Three-way matching adds a goods receipt or service entry. Some processes also compare inspection or contract evidence when acceptance is conditional.
How does the matching workflow operate?
The system or reviewer aligns invoice lines with PO lines, applies approved tolerances and flags exceptions. A designated owner then resolves discrepancies, records the decision and releases or holds the invoice.
Which discrepancies matter?
Common exceptions include excess quantity, a different unit price, duplicate freight, unapproved tax, a changed currency, missing receipt and an invoice that references the wrong PO revision.
What do tolerances do?
Tolerances allow small authorized differences without manual review. They should identify the field, threshold, approver and whether the rule applies per line or to the invoice total. A tolerance is not permission to ignore repeated supplier errors.
What proves completion?
Keep the matched records, exception history, approver, final accounting entry and payment reference. A successful match supports approval but does not prove the payment settled.
