AP & AR
Three-way match
For UK companies with a purchase order process, we check the purchase order, goods received note and supplier invoice against each other before a bill is approved, catching a price or quantity error inside Xero, QuickBooks Online or Sage before payment goes out.
Aged receivables
Illustrative client · August 2026
GBP
| 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 payment, not after
A purchase order, a goods received note and the supplier's invoice are compared line by line before a bill moves into your payment run. Quantity and price variances are flagged rather than waved through, so a supplier who bills for ten units against an order for eight gets caught while the invoice is still sitting in review, not after the payment has cleared.
Bills with no matching purchase order are held for your review rather than approved on trust. That is deliberate: a purchase order process only protects you if a bill without one gets a second look, not an automatic pass. A short exceptions list is kept for anything that did not match cleanly, so a repeat pattern with one supplier is easy to spot over time.
Once a bill clears the match, it moves into the normal bill-pay approval flow in Xero, QuickBooks Online or Sage, queued for your release the same way any other supplier payment is.
Getting started without a formal process in place
A formal purchase order system helps but is not required to start. For companies without one yet, we can set up a simple purchase order and goods-received workflow inside your existing accounting software, sized to how many suppliers and orders you actually run each month. Either way, the goal is the same: a bill only clears for payment once what was ordered, what arrived and what was billed all agree with each other.
Questions
Frequently asked questions: Three-way match
Do we need a formal purchase order system already running?
It helps, but is not required to start. We can help set up a simple purchase order and goods-received process if you do not have one yet.
What variance counts as worth flagging?
We agree a threshold with you at onboarding, such as any price or quantity difference over a set amount or percentage, so small rounding differences do not trigger unnecessary reviews.
Which UK accounting platforms support three-way matching?
Xero, QuickBooks Online and Sage all support it directly or through a connected bill-pay add-on. We confirm the exact setup for your stack at onboarding.
What happens when a bill fails the three-way match?
The bill is held rather than approved for payment, and the discrepancy, whether price, quantity or a missing goods received note, is flagged to whoever owns supplier relationships on your side. Nothing is paid until the mismatch is resolved or you explicitly approve the exception.
Does this work for services as well as physical goods?
A three-way match is built for purchase orders with a goods received note, so it fits physical stock most naturally. For services without a delivery note, we typically match the bill to the purchase order and your sign-off instead, which covers the same control without forcing a physical-goods process onto services.
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.