Three-Way PO Matching

Overview

Three-way matching compares purchase orders, goods receipts, and invoices to verify that what was ordered matches what was received and billed.

What is Three-Way Matching?

The process involves three key documents:

1. Purchase Order — specifies what was ordered
2. Goods Receipt — confirms what was physically received
3. Invoice — shows what the vendor is billing

These documents are compared line-by-line to ensure accuracy and compliance.

Finding Purchase Orders

Automatic Matching

TaprNext automatically attempts to match POs based on:

• PO number referenced on the invoice
• Vendor name combined with date range
• Line item descriptions

Manual PO Selection

Users can manually search and select POs by:

1. Clicking the Match PO button
2. Searching by PO number, vendor, or date range
3. Selecting the appropriate PO
4. Clicking Apply to confirm

Line-by-Line Matching

Match Status Indicators

Status	Icon	Meaning
Matched	✓	Quantities and prices align
Variance	⚠	Differences exist within tolerance
Mismatch	✗	Exceeds configured tolerance
Unmatched	○	No corresponding PO line found

Matching Process

1. Click an invoice line to view options
2. Available PO lines appear for selection
3. Select a matching PO line or mark as unmatched

Variance Handling

Tolerance Thresholds

Configured in Tapr Settings:

• Quantity: Default 5% variance allowed
• Price: Default 2% variance allowed

Variance Actions

When discrepancies are detected, users can:

• Accept the variance
• Request a PO amendment
• Reject the invoice

Approval requirements depend on variance size—small variances may be clerk-approved, while larger ones escalate to managers.

Unmatched Invoices

For invoices without a PO, mark as “Non-PO Invoice” and select a reason such as utility bills, service invoices, or emergency purchases.

Partial Matching

When an invoice covers only part of a PO, matched lines are resolved while remaining lines stay open for future invoice matching.

Best Practices

• Verify PO existence before ordering
• Request vendors include PO numbers on invoices
• Carefully review variance explanations
• Document reasons for exceptions