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Three-Way Matching

Definition

The process of comparing a purchase order, receipt, and invoice to ensure they agree before approving payment.

Overview

Three-way matching is an AP control that verifies invoices against purchase orders and receiving documents before payment. The match confirms that what was ordered, received, and billed all agree on quantities, prices, and terms. Automated three-way matching can process most invoices without human intervention, flagging only exceptions for review. This ensures payment accuracy while dramatically reducing processing time.

Why It Matters

Without automated three-way matching, organizations either overpay vendors due to undetected discrepancies or create bottlenecks by manually reviewing every invoice. Both outcomes are costly—overpayments leak margin while slow approvals damage supplier relationships.

How New Odyssey Helps

New Odyssey automates three-way matching with AI that handles line-item variations, partial shipments, and pricing discrepancies—achieving 90%+ auto-match rates and flagging only true exceptions for human review.

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