ACCOUNTS PAYABLE · THREE-WAY MATCH

Did We Get What We Paid For?

AI automatically matches every Purchase Order → Goods Receipt → Vendor Invoice. Catches duplicate payments, price variances, and quantity discrepancies instantly.

100%
Transactions Tested
8 hrs
Saved per Month
1-3%
Duplicates Found

The Three-Way Match Process

1. Purchase Order (PO)

What you ordered from the vendor: PO number, vendor name, item descriptions, quantities, agreed prices, total amount.

2. Goods Receipt / Receiving Report

What you actually received: Receipt date, quantities received, condition notes, receiving personnel signature.

3. Vendor Invoice

What the vendor is billing you for: Invoice number, invoice date, line items, quantities billed, prices charged, total amount due.

✅ AI Matching Criteria

  • PO number matches across all three documents
  • Vendor name is consistent
  • Line items match (same products/services)
  • Quantities: Invoice ≤ Goods Receipt ≤ PO
  • Prices: Invoice price = PO price (within tolerance)
  • Total amounts reconcile correctly

Exceptions Detected

🚨 Duplicate Payments

Same invoice paid multiple times (different invoice numbers but same PO, amount, date, vendor).

Example: Invoice #12345 paid on March 5. Invoice #12345-REV (revised invoice) paid again on March 12 for same PO.

⚠️ No PO Match

Vendor invoice received but no corresponding purchase order found in system.

Example: Vendor invoice references PO #2024-5678, but that PO doesn't exist or was never approved.

💰 Price Variance

Invoice price exceeds PO price by more than acceptable tolerance (usually 5-10%).

Example: PO approved for 100 units @ $50 each. Invoice charges $55 per unit (10% increase) without approval.

📦 Quantity Discrepancy

Vendor invoicing for more quantity than was actually received.

Example: PO for 100 units. Receiving report confirms 95 units received. Invoice bills for 100 units.

👤 Unauthorized Vendor

Payment to vendor not on approved vendor master file or without proper authorization.

Example: New vendor "ABC Supplies LLC" submits invoice but is not in approved vendor list and has no authorization paperwork.

How It Works

1

AI Ingests Documents

Purchase orders, receiving reports, and vendor invoices flow in via email forwarding, accounting system sync, or manual upload. AI extracts all data fields automatically.

2

AI Performs Matching

For each vendor invoice, AI looks for matching PO and goods receipt. Validates all criteria: vendor, PO number, line items, quantities, prices, amounts.

✅ PO #2024-1234: Office Supplies Inc
✅ Receipt 03/15: 50 reams paper received
✅ Invoice #5678: 50 reams @ $4.50 = $225
✅ Match successful → Auto-approve
3

AI Flags Exceptions

When match fails or variance exceeds tolerance, AI creates exception and notifies you via email/Slack.

⚠️ Exception: Price Variance
Invoice #5679 from Office Supplies Inc
PO price: $4.50/ream
Invoice price: $5.25/ream (+16.7%)
Action needed: Review and approve or reject
4

You Review Exceptions (2-5 min/day)

Click exception → see all three documents side-by-side → approve, reject, or request more info. AI handles the rest automatically.

The Cost of Not Testing

Industry Statistics

Duplicate payments (% of total AP)0.5-2%
Manual 3-way match time per invoice15-20 min
Average recovery rate for duplicates30-40%
Lost per year (on $10M spend)$30-120K

TieStream tests 100% of transactions in real-time. Typical ROI in 1-2 months.

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