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Invoice matching - what is it?

Invoice matching ensures that a purchase order, a delivery received and a supplier invoice match each other before a payment is made. By matching these three documents, businesses can ensure that they only pay for the goods or services they have actually ordered and received, and that the amounts match. Manually matching invoices to purchase orders and goods receipts can be a complicated and time-consuming task, and in complex cases, one invoice can represent purchases from many different purchase orders over an entire month, meaning that all these purchase orders from different buyers within the organization are co-invoiced. Modern technology offers a solution to this problem. Through automated supplier invoice management, invoice matching can automate much of the process, allowing invoices to be processed through a fully automated workflow - with no manual intervention at all.

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How invoice matching works:













Different types of invoice matching

To ensure that businesses pay correctly for goods and services they have ordered and received, there are several standardized matching processes. From a simple match between invoice and purchase order, to more complex matches involving multiple stages of verification, these processes ensure that every payment is eligible. Depending on the company's invoice matching needs and the specific purchasing process, it may be appropriate to use 2-, 3- or even 4-way matching. Whichever process is used, the goal is the same, to ensure that the money paid is accurate and justified, and that the risk of incorrect payments is minimized.

2-way matching

This process ensures that the information on an invoice matches that on the corresponding purchase order. It focuses solely on the consistency between these two documents. 2-way matching is particularly important to minimize the risk of double payment or payment for goods and services that have not been delivered as agreed. As this process focuses only on the match between the invoice and the purchase order, it offers a quick and efficient method of validating invoices before payment.

3-way matching

3-way matching takes the verification process one step further. In addition to comparing and ensuring that the invoice matches the original purchase order, it also verifies that the receipt of the goods or services matches what is on the invoice. Including this third component in an invoice matching process makes it clear that the goods or services have not only been ordered but also correctly received before payment is made. 3-way matching is the most common invoice matching process.

4-way matching

The most comprehensive matching process. Besides verifying the correspondence between invoice, purchase order and goods receipt, this process also ensures that the invoice information matches any acceptance or inspection documents. This step is included if it is an integral part of the purchasing process, providing an additional security check before payment.

Why invoice matching?

If a company really wants to maximize its savings and efficiency gains, it should prioritize systems that offer full automation of invoice matching. When facing the decision to choose a system for your business, we strongly recommend that you focus not only on current needs but also on the system's potential to meet future challenges. This may mean prioritizing the system's ability to fully automate the management of invoices.

Nine benefits of the Conrab Opto module
for supplier invoices

Handles invoices in all formats

Automatic interpretation at header and line level

Automatic matching at header and row level

Automatic registration, account distribution and certification

Advanced flow control capabilities

Automatic reminders and escalations

Reports and statistics

Credit monitoring and system notifications

Supplier certificate, supplier cards

Frequently asked questions about

automated supplier invoice management

What is the purpose of invoice matching?

Invoice matching ensures that invoices correctly reflect agreed prices, quantities and terms before payment is made, minimizing the risk of incorrect or redundant payments.

How does automated invoice matching differ from manual?

While manual matching requires a person to review and compare each invoice against its corresponding document, automated matching handles this process digitally, which is often faster, more accurate and less labor intensive.

Can automated invoice matching handle complex invoices with multiple items and purchase orders?

Yes, modern matching systems are capable of handling complex invoices, including those that contain multiple items and need to be matched against multiple purchase orders.

What happens if an invoice does not pass the automated matching process?

If an invoice does not match the automated process, within accepted tolerances, it will be sent to a user for manual processing.

Why is it important to choose a system that offers a high level of automation in invoice matching?

A highly automated invoice matching system can significantly improve efficiency, reduce human error and contribute to cost savings. It can also help as your business grows.

Want to know more? We'll be happy to tell you how we can optimise your document and case management.

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Conrab Opto can be integrated with all known business systems.

Microsoft Dynamics NAV business system
Microsoft Dynamics AX can be integrated with Conrab Opto
Conrab Opto can be integrated with the Microsoft Dynamics 365 F&O business system.
SAP ERP system can be integrated with Conrab Opto
Conrab Opto can be integrated with Oracle NetSuite
Integrate with the Infor M3 business system
The Oracle business system
Xero can be integrated with Conrab Opto
SAP Business One ERP system
Conrab Opto can be integrated with the Intuit QuickBooks business system.
Integrate with JD Edwards Enterprise Software