AP & AR
Three-way match
For Hong Kong companies, purchase orders, receiving records and vendor invoices are compared line by line before a bill is approved for payment, catching price and quantity errors before money moves and keeping the payable trail clean for your annual audit.
Aged receivables
Illustrative client · August 2026
HKD
| 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.
Three-way match for Hong Kong purchasing
A purchase order, its receiving record and the vendor's invoice are compared line by line before a bill moves into the payment queue. Quantity and price variances are flagged before approval rather than after payment, and bills with no matching purchase order are held for your review instead of paid automatically.
This matters more for companies importing goods through Hong Kong's ports and re-export trade, where a single shipment can generate a purchase order, a delivery note and an invoice that arrive days apart and do not always agree on quantity or unit price. Catching a mismatch before payment is faster and cheaper than unwinding it afterward, and a documented matching process is also something your statutory auditor will look for when testing purchases and payables.
Getting started without formal purchase orders
A formal purchase order process is not required to start. We can help set one up during onboarding if your business does not already track purchases that way, starting with the handful of larger or recurring suppliers where a mismatch would matter most.
Variance thresholds
We agree a variance threshold with you at onboarding, such as a set percentage or dollar amount, so small rounding differences on freight or exchange rates do not trigger a review on every single bill, while a genuine pricing or quantity error still gets caught before it is paid.
Questions
Frequently asked questions: Three-way match
Do we need formal purchase orders already in place to use this?
It helps, but is not required to start. We can help set up a simple purchase order process during onboarding if you do not have one yet.
Is this especially useful for import or trading businesses?
Yes. Companies that import goods through Hong Kong often have a purchase order, delivery note and invoice arrive separately, sometimes with different quantities or prices. Three-way matching catches that before payment.
Does this process help at audit time?
It can. A documented match between purchase order, delivery record and invoice is the kind of evidence your statutory auditor looks for when testing purchases and payables.
What happens when the three documents do not agree?
The bill is held rather than approved for payment, and the discrepancy, whether price, quantity or a missing delivery note, is flagged to you so you can resolve it with the vendor before money moves.
Do you need a copy of the delivery note or goods received record?
Yes. A receiving record, even a simple signed delivery note or warehouse log, is needed to match against the purchase order and invoice. We can help set up a basic version during onboarding if you do not already have one.
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.