Three-way matching compares the purchase order, delivery ticket and invoice. It connects what was ordered, recorded as delivered and billed, highlighting differences that need investigation.
Each document has a different role
The purchase order records the vendor, items, quantities, prices and project. The delivery ticket covers a specific shipment. The invoice records the vendor's charges.
Before comparing them, confirm that all three belong to the same transaction. The order number is a useful link, but also check the vendor, project and dates. A document assigned to the wrong order may appear correct in a limited review.
Match units, quantities and prices
The same material may use different units across documents. An order might list individual units while the delivery ticket lists packages. Check the conversion ratio and item description before deciding there is a discrepancy.
When reviewing prices, distinguish the unit price, discount, freight charge and total. If an additional charge was agreed separately, keep that agreement with the order.
- Matching vendor and project
- Purchase order number and document links
- Item description and unit of measure
- Ordered, received and invoiced quantities
- Unit price and agreed additional charges
How do you handle a partial shipment?
Suppose an illustrative order contains 100 units at $20 each, and 70 arrive in the first shipment. If the invoice covers that shipment, review it against 70 units and a $1,400 base amount before any additional charges.
If the invoice lists 100 units, check for another delivery, different billing terms or an error. Do not change a quantity simply to make the documents match technically.
Every discrepancy needs an owner
A missing quantity usually needs review by the person who received the delivery. A price difference requires checking the order and vendor agreement. A missing document should go to someone who can obtain it. Record who is handling the issue and what is needed to finish the review.
Software can organize documents and surface differences, but the team decides whether a difference is justified. Automated text extraction also needs verification, especially for scanned records or unclear photos.
What should you keep after resolving it?
Keep the corrected document or explanation, the date and the person who approved the resolution. Someone reviewing the transaction later should understand why the invoice was handled that way without reconstructing scattered conversations.
Frequently asked questions
Is a matching total enough?
No. Also review items, units, quantities, prices and project context. An overcharge on one item can offset an undercharge on another and disappear in the total.
Does OCR replace document review?
No. Text extraction helps enter information, but the extracted data and order assignment must be verified. Discrepancies and commercial terms still require team review.
Keep reading
How to Build a Construction Procurement Workflow →
How to Track Partial Deliveries and Delivery Tickets →
Invoice vs. Purchase Order Discrepancies: How to Review and Resolve Them →