Purchase Order and Invoice Matching Software Solution

Traditional automated invoice matching systems typically rely on rules-based automation, which uses predefined criteria to compare documents. These systems work well when the data matches perfectly across documents but falter when discrepancies, such as different name formats or minor typos, arise. For instance, if a purchase order lists “ABC Incorporated” but the invoice reads “ABC Inc.,” a rules-based system might flag this as an QuickBooks error requiring manual review.

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During matching, any differences between the invoice, PO, and Goods Receipt are identified as discrepancies. These can include price or quantity mismatches, unordered items, or calculation errors. Discrepancy identification is crucial for catching potential payment errors before they occur. This is where Stampli’s invoice matching software can make life much easier and greatly increase rates of three-way matching. The invoice is flagged for further review if the discrepancies exceed the defined tolerance range.

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This leads to improved financial management, cost reductions, and stronger supplier relationships. Automation in the accounts payable process allows businesses to operate more smoothly and focus on growth and strategic initiatives. Resolving discrepancies in invoice matching is a critical component of the invoice processing workflow.

What our invoice automation solution can do for you

📌 Best for large enterprises requiring advanced processes and compliance automation. 📌 Best for small to mid-sized businesses looking for easy invoice automation without a complex ERP system. Most invoicing software feeds directly into ERP and accounting platforms, so all your financial data is safe in one place. A 3-way PO is commonly used for purchases involving physical goods where verification of receipt is critical. It’s also used in scenarios where the risk of discrepancies is higher, such as with expensive, high-volume, or complex purchases. Support user adoption and change management during launch while guiding suppliers through onboarding.

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• It performs real-time data checking, line-item matching, and automatic postings, eliminating the need for data replication.
• By implementing robust invoice matching software, businesses can significantly enhance their AP function, improve operational efficiency, reduce costs, and gain a significant competitive advantage.
• The 3-way invoice matching process consists of matching invoices with their corresponding purchase orders and receiving reports to determine the validity of items and amounts mentioned in the invoice.
• This frees up valuable time for AP staff, allowing them to focus on more strategic tasks such as vendor relationship management, financial analysis, and process improvement.
• It can do this by scanning paper invoices or pulling data from digital ones.
• This shift frees staff from repetitive tasks, allowing them to focus on strategic activities like vendor management and vendor payment automation.

Since most payments are made according to invoice details, they must be matched against other supporting documents to verify their accuracy. The 3-way matching process matches the purchase order, invoice, and goods receipt note to validate a supplier’s invoice before payment is submitted. The 3-way match process helps determine if invoices should be partly or fully paid. A 3-way match internal control feature can help prevent the reimbursements of unauthorized purchases. The typical invoice processing routine may follow a certain set of steps, although invoice processing routines can vary to some extent from one team to the next. The three main items of the routine are purchase orders, invoices, and bill payments.

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This improvement in efficiency frees up resources for more strategic work and ultimately reduces costs. Next, the software matches this data with corresponding purchase orders and receiving documents. It checks for discrepancies in terms of pricing, quantity, and other important details. If everything aligns, the invoice is deemed a match and can be processed Bookkeeping for Painters for payment. If there are any discrepancies, the software flags them for further review by an accounts payable team member. Once these discrepancies are resolved, the invoice can be approved for payment.

Contract matching consists of ensuring vendor invoices are within discussed contracts. Invoice matching is the process where an invoice or invoice lines are compared with an order document, such as a purchase order (PO), a contract or a delivery note/goods receipt. When an invoice corresponds with a purchase order, it inherits the order’s coding and approval details, allowing it to be directly forwarded to your ERP or accounting system. The 3-way match method is used by companies to improve invoice validation and supplier payment.

Understanding Automated Invoice Matching Software

• In this blog, we’ll explore how AI-powered invoice matching software is transforming businesses of all sizes by eliminating manual errors and expediting processes.
• Your purchase order, goods receipt, and supplier invoice must align for this matching process.
• An ideal invoice matching solution integrates with document management systems, ensuring that invoices and related documents are stored and accessible within a single platform.
• To choose the right invoice-matching software, it’s crucial to identify your business needs and then move forward with picking software that can fulfill those.
• The result is a more efficient, accurate, and scalable AP process that can support organizational growth, financial control, and compliance.

When discrepancies occur, automated workflows route exceptions to designated approvers based on variance type and materiality. Common issues include price mismatches, invoice matching quantity differences, and missing purchase orders. The system categorizes exceptions by type and urgency, enabling efficient resolution. Two-way matching compares the purchase order against the vendor invoice, verifying price, quantity, and terms. This method suits simple purchases like office supplies, subscriptions, or routine services where delivery confirmation isn’t critical. Organizations benefit from faster processing times and reduced administrative burden.