Three-Way Matching
How to automate PO, goods receipt, and invoice matching to prevent payment errors.
Overview
The Procurement Match module automates three-way matching — comparing your purchase order, goods receipt, and supplier invoice to ensure consistency before payment authorisation. This prevents overpayments, duplicate payments, and fraudulent invoices from reaching your finance system.
Step-by-Step Guide
Step 1: Create a Purchase Order from Contract
Generate a purchase order (PO) directly from an active contract. The PO auto-populates with contracted rates, quantities, and delivery terms. Confirm the PO details and send it to the supplier through the portal. Each PO is linked to its parent contract for full traceability.
Step 2: Record Goods Receipt on Delivery
When goods or services are delivered, the receiving officer records a Goods Receipt Note (GRN) in the system. Capture the actual quantities received, condition, and any discrepancies against the PO. The GRN is timestamped and linked to the original PO for matching purposes.
Step 3: Receive the Supplier Invoice
The supplier submits their invoice through the portal or via email integration. The system extracts key data — invoice number, line items, quantities, and amounts — and links it to the corresponding PO and GRN. Manual entry is minimised through automated data capture.
Step 4: System Auto-Match
AzaniaSCM automatically compares the three documents across quantity, unit price, and total amount. If all values align within configured tolerance thresholds, the invoice is marked as "Matched" and routed for payment authorisation. Matching rules are configurable to your organisation's tolerance levels.
Step 5: Review Exceptions
Any discrepancies — such as quantity variances, price differences, or missing GRNs — are flagged as exceptions and routed to the responsible officer for investigation. Each exception includes a clear breakdown of the mismatch and the original document references. The officer can approve with justification, reject, or request correction from the supplier.
Step 6: Authorise Payment
Once matched (or exceptions resolved), the invoice is routed to the Finance Approver for final payment authorisation. The approver reviews the complete audit trail — PO, GRN, invoice, and any exception notes — before approving. Approved invoices are exported to your finance system for payment processing.
Tips & Best Practices
- Record goods receipts promptly upon delivery — delayed GRNs hold up the matching process and delay supplier payments.
- Investigate discrepancies immediately; unresolved exceptions can accumulate and create month-end processing backlogs.
- Use the exception report as a management tool to identify recurring supplier issues such as incorrect invoicing patterns.
- Configure appropriate tolerance thresholds — overly strict tolerances create unnecessary exceptions, while loose tolerances may miss genuine errors.
Related Features
Procurement Match — Features page →