How to Do a Three-Way Match, Step by Step

The steps, in plain language

1
Find the purchase order
Use the PO number on the invoice. If there is none, ask the requester for it before going further; a non-PO invoice goes to approval instead of matching.
2
Find the receiving record
Pull the goods receipt or delivery note for the same PO. It tells you what actually arrived, line by line.
3
Check the header
Vendor, PO number and currency must agree on all three documents.
4
Check quantities line by line
Quantity invoiced should be no more than quantity received. A shortfall in the receipt is a quantity exception.
5
Check unit prices line by line
Invoice unit price should equal the PO price, within your price tolerance (a percentage, an amount, or both).
6
Check tax, freight and the total
Do these last. Small tax rounding is the most common false alarm, which is why many teams set a separate tax tolerance.
7
Approve or raise an exception
Approve lines that pass. For lines that fail, record the reason and send it to whoever can fix it: the buyer for price, the receiver for quantity, the supplier for a corrected invoice or credit note.
8
Update the PO balance
If the invoice covers only part of the order, reduce the open balance so the next invoice is matched against what is left.

In Aequo AP

Do it in Aequo AP

Aequo matches the purchase order, the invoice and, when you upload one, the delivery note. Set your tolerances once; after that, review only what the match engine cannot clear.

1
Set your tolerances
Go to Settings › Global Tolerances and set Price %, Qty Units (an absolute number of units) and Tax %. Tick Ignore Tax Lines if tax should not block a match. Only Owners and Admins can save. You can override tolerances for one vendor in the Tolerance Settings section of that vendor’s page.
2
Decide how partial invoices are treated
In Settings › Matching Rules, turn on Partial Invoicing and set Partial Invoice Tolerance (%) so legitimate part-bills against a PO are not treated as exceptions. Select Save Rules.
3
Create or upload the purchase order
Use Documents › Create Purchase Order (PO Number, Supplier, Order Date and the line items, then Create PO), or upload an existing PO from Documents › All Documents with Upload Documents and document type Purchase Order (PO).
4
Upload the delivery note
Aequo has no separate goods-receipt screen. Record what arrived by uploading the delivery note: Upload Documents, choose the supplier, and set Select Document Type to Delivery Note (DN).
5
Capture the invoice
Upload it with document type Invoice (INV), or forward it to the address shown on the Email Ingestion card on the Integrations page (Forward invoices to).
6
Review the Match Queue
Open Documents › Matches. CLEARED means the invoice matched within tolerance; CLEARED_MANUAL means a person approved it; EXCEPTION needs review; PARTIAL_INVOICE means it fits within the PO’s remaining balance. Open a match to see Match Details and use Approve Lines, Dispute Lines or Join Lines.
7
Work the exceptions
Open Documents › Exceptions (the Exception Queue). From a row, use View Details, Email Supplier, Escalate or Resolve. In the exception, attach evidence, then select Mark as Resolved once the PO is updated or a credit note is received.

In QuickBooks Online

Where QuickBooks Online and Xero fit

The match happens in Aequo; your accounting system receives the result. Once a matched invoice is approved, Aequo syncs it as a bill.

1
Connect your accounting system
On the Integrations page, select Connect on the QuickBooks Online card (it syncs vendors, bills and purchase orders) or connect your Xero organisation (contacts, invoices and purchase orders).
2
Check sync status
Settings › Accounting Sync shows each connector, a PO Match Writeback setting per connector, and Retry for anything that failed.
3
Pay the bill in your accounting system
Paying vendors from Aequo is coming soon. Today, approved bills sync to QuickBooks Online or Xero and you pay them there.

Common mistakes

Matching to the PO total instead of line by line, which hides a price increase offset by a short shipment.
Paying before the receipt is recorded, then discovering the goods never arrived.
Tolerances so loose that real overcharges clear, or so tight that rounding fills the exception queue.
Matching later invoices against the original PO quantity instead of the remaining balance.

Frequently asked questions

What do I need to do a three-way match?

The purchase order, a receiving record for the goods (a goods receipt or delivery note) and the supplier invoice. In Aequo, upload the delivery note as document type Delivery Note (DN).

What tolerance should I set for a three-way match?

There is no standard. Start with a small price percentage and an absolute unit allowance, review the exceptions for a month, and tighten or loosen from there. Set tighter limits for vendors with a history of billing errors.

What happens when an invoice fails the match?

It becomes an exception. Someone confirms whether the PO, the receipt or the invoice is wrong, gets it corrected (an updated PO, a late receipt or a credit note) and then approves it.

Can I do a three-way match in QuickBooks Online?

Aequo runs the match and syncs the approved bill to QuickBooks Online. For what QuickBooks itself offers, check Intuit’s documentation for your plan.

Try it in Aequo AP

Aequo AP captures invoices, matches them to purchase orders and delivery notes, routes approvals and flags exceptions and duplicates, then syncs approved bills with QuickBooks Online, Xero, FreshBooks or Zoho Books.

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