AP & AR
Three-way match
Purchase orders, receiving records and vendor invoices are checked against each other before a bill is approved for payment, catching price and quantity errors early so an Australian business is not paying for stock or services it never received, and the mismatch is flagged before the payment run, not after.
Aged receivables
Illustrative client · August 2026
AUD
| Customer | Current | 1-30 | 61+ | |
|---|---|---|---|---|
| Customer A | 18,400 | - | - | - |
| Customer B | 9,250 | 4,100 | - | - |
| Customer C | - | 6,780 | 2,200 | - |
| Customer D | 12,600 | - | - | - |
| Customer E | - | - | - | 1,450 |
| Total | 40,250 | 10,880 | 2,200 | 1,450 |
Illustrative. An example of the document, not a client's figures.
Catching the error before the money moves
A three way match compares three documents before a bill is approved: the purchase order that set the terms, the receiving record confirming what actually arrived, and the vendor invoice asking to be paid. When all three agree, the bill moves into your normal approval flow. When they do not, it stops.
What a mismatch actually looks like
Most mismatches are not fraud, they are ordinary supply chain friction: a partial delivery that still gets invoiced in full, a freight surcharge added after the purchase order was raised, or a unit price that rolled over from an old rate card the supplier forgot to update. Each one is small on its own, but across dozens of vendor invoices a month they add up to real money leaving your account for goods or services you never actually received in full.
Where this matters most
Businesses buying physical stock, whether wholesale, hospitality or trades, are exposed to short deliveries and price creep on repeat orders. A three way match catches a supplier invoicing for ten units when only eight arrived, or a unit price that quietly moved up since the last order.
A threshold agreed with you
Not every discrepancy is worth stopping a payment over. During onboarding we agree a variance threshold with you, such as any price or quantity difference over a set dollar amount or percentage, so a small rounding difference does not trigger an unnecessary hold.
No formal purchase order system required to start
You do not need a mature purchase order process already running for this to work. We can help set up a simple purchase order workflow in Xero or QuickBooks Online if you do not have one yet.
Questions
Frequently asked questions: Three-way match
Does three-way matching slow down paying suppliers on time?
No. Matching runs as bills come in, so approved invoices are still queued for payment on the schedule you set.
Do you handle partial deliveries against a purchase order?
Yes. A partial delivery is matched against the portion of the order actually received, and the remainder stays open until it arrives.
Does this work with a warehouse or inventory management system?
Yes, where it connects to Xero or QuickBooks Online. Tell us your stack during onboarding and we will confirm the setup.
Do you set up the purchase order process for us, or only work within one we already have?
We can help design a simple purchase order workflow if you have none, but the matching itself relies on purchase orders, receipts and invoices existing before we compare them for variances.
What software do you use for three-way matching?
Whatever purchasing and accounting software you already run, most often Xero or QuickBooks Online alongside a purchase order or bill approval app already in place.
Do we need formal purchase orders already in place for this to work?
It helps, but is not required to start. We can help set up a simple purchase order process if you do not have one yet.
What counts as a variance worth flagging?
We agree a threshold with you during onboarding, such as any price or quantity difference over a set amount or percentage, so small rounding differences do not trigger unnecessary reviews.
How is three-way match priced?
Pricing for three-way match depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
What software works with three-way match?
Three-way match runs inside QuickBooks Online or Xero, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.