What is 3-Way Match?
3-Way Matching in procurement verifies that the Purchase Order, Goods Receipt, and Supplier Invoice all agree before a payment is authorised — the primary control against supplier fraud.
3-Way Match Process
The three documents that must match: (1) Purchase Order (what was ordered and at what price), (2) Goods Receipt / Purchase Receipt (what was actually received), (3) Purchase Invoice (what the supplier billed). Discrepancies in quantity or price are investigated and resolved before payment is released.
3-Way Match in ERPNext
ERPNext enforces 3-way matching by linking the Purchase Invoice to a Purchase Order and Purchase Receipt. If "Purchase Receipt Required" is enabled in Buying Settings, invoices cannot be created without a receipt. The Purchase Invoice shows ordered, received, and billed quantities side by side.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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