Three-way match automation: resolve invoice exceptions faster

At a glance

Three-way match automation prevents invoice fraud by verifying purchase orders, receipts, and invoices.

Exceptions like quantity mismatches or missing receipts are unavoidable but must be resolved quickly.

Efficient routing and audit-ready documentation keep compliance intact while accelerating approvals.

Moxo streamlines exception handling with Magic Links, automated routing, and secure audit trails for measurable ROI.

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The hidden cost of manual matching: Why exceptions derail savings

Invoice exceptions are more common than many teams admit. According to McKinsey, businesses lose up to 3–5% of spend annually due to inefficient procurement processes, with invoice mismatches a key driver. When accounts payable teams rely on manual matching, they spend hours comparing line items across systems, emailing suppliers, and escalating approvals.

The result: delayed payments, duplicate invoices, strained supplier relationships, and higher compliance risk. For leaders exploring solutions, the question is clear — how do you automate three-way match while still ensuring humans step in when needed?

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What is three-way match automation

Three-way matching verifies that an invoice, a purchase order (PO), and a goods receipt align.

If 500 units are ordered on the PO, 500 are invoiced, and 500 are received – the match clears.

If discrepancies arise – 490 received, 500 invoiced – an exception is flagged.

Manual matching works at a small scale, but it collapses under volume. Automation accelerates this by running matches in real time, flagging exceptions, and triggering workflows to route decisions.

With platforms like Moxo’s workflow automation, teams gain a centralized hub where matching is tracked, exceptions routed, and decisions recorded, all without leaving the portal.

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The three most common exceptions slowing down your AP team

Quantity mismatch

The most frequent error: the number of items received does not align with the PO or invoice. This can be due to supplier shortages, over-delivery, or partial shipments.

Price variance

Suppliers may adjust unit pricing, freight charges, or taxes between PO and invoice. Even small differences can create large exceptions across thousands of invoices.

Missing receipt

Sometimes invoices arrive before the goods receipt is logged. This creates delays, as accounts payable waits for confirmation from warehouse or procurement.

Industry research shows 20-30% of invoices require exception handling in large organizations. Each exception typically adds days to cycle time, increases supplier follow-ups, and raises the risk of late-payment penalties.

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Clearing exceptions faster with automated routing and Magic Links in Moxo

Automation doesn’t eliminate exceptions, but it ensures they are cleared faster. In Moxo, flagged invoices are automatically routed to the right decision-maker, reducing back-and-forth emails.

Magic Links are central here. Instead of forcing suppliers or managers to log into a complex AP system, they receive a secure link where they can review the flagged invoice, comment, and approve or reject in one click.

Example:

• An accounts payable clerk sees a mismatch between PO and invoice.
• Moxo automatically routes it to the procurement manager.
• The supplier receives a Magic Link to confirm whether the shipment was partial.
• All parties resolve the issue in hours, not weeks.

This model has a proven impact. For instance, Connor Consulting cut project cycles by 54% and reduced client drop-offs by 81% using centralized portals for approvals and exceptions. The same principle applies in procurement.

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Capturing evidence and the full audit trail

When exceptions occur, documentation is as important as resolution. Regulators and auditors want to know who approved what, and when.

Moxo creates an immutable audit trail, logging every action, comment, and approval. This ensures compliance with frameworks like SOC 2 and GDPR, while also reducing risk in disputes.

Imagine an auditor asking why a mismatched invoice was paid. Instead of searching emails, AP can show a full timeline: when the exception was flagged, who approved the resolution, and supporting supplier confirmations. This transforms compliance from a burden into a built-in process.

You can learn more about Moxo’s security framework, which underpins this capability.

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Measuring success: KPIs and free template for automated matching

Success with three-way match automation requires measurable outcomes. Key performance indicators (KPIs) to track include:

Invoice auto-match rate: Percentage of invoices cleared without human touch.

Exception resolution time: Average time taken from flag to approval.

Dispute resolution rate: Percentage of supplier disputes resolved within SLA.

Invoice cycle time: Days from receipt to payment authorization.

To make adoption practical, we recommend starting with a three-way match automation template. Moxo offers pre-built flows in its no-code builder, so finance teams can standardize exception routing, integrate e-signatures, and capture supplier confirmations.

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Evaluating tools: How automation beats basic AP processing

Choosing the right tool means weighing factors beyond “can it match three documents.”

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Ask yourself: Would you invite your supplier into your AP system? With Moxo, the answer is yes; suppliers engage securely without friction.

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How Moxo connects matching, routing, and audit trails in one flow

Manual matching between invoices, receipts, and POs creates unnecessary friction. Moxo automates three-way matching and exception handling across systems and stakeholders.

Workflow automation compares key fields automatically, flagging discrepancies instantly. Integrations pull matching data from ERP and procurement systems.

When mismatches occur, stakeholders resolve them directly in vendor portals, with every correction tracked in audit logs. Performance dashboards monitor resolution speed and exception rates.

Moxo eliminates manual triage, turning matching into a transparent, auditable, and fast-moving workflow.

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Efficient routing and audit-ready documentation

Three-way match automation is no longer “nice to have.” For modern finance and procurement teams, it is the only way to control spend, strengthen supplier trust, and pass audits without stress. By automating the matching process, routing exceptions with human oversight, and logging every decision, organizations create both speed and compliance.

With Moxo, leaders gain more than automation: they get a secure, collaborative platform that ensures exceptions are handled once, recorded forever, and resolved without wasted time.

Next step: Book a demo with Moxo to see how you can clear invoice exceptions faster.

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FAQs

What is three-way match automation?

It is a process that automatically compares purchase orders, invoices, and receipts to detect mismatches, reducing errors and fraud.

How does Moxo handle invoice exceptions?

Moxo uses automated routing and Magic Links so suppliers and managers can resolve mismatches quickly in one secure portal.

What KPIs prove ROI from automation?

Firms should track invoice auto-match rate, average resolution time, and cycle time reductions to measure performance gains.

How is Moxo different from AP tools?

Unlike basic AP systems, Moxo enables multi-party orchestration, secure audit trails, and supplier engagement without login friction.

Does three-way match automation reduce compliance risk?

Yes. Moxo’s audit trails capture every approval and comment, ensuring regulators see a complete, tamper-proof history of decisions.