Two-way vs three-way match: which to use when?
At a glance
Two-way and three-way matching processes ensure that organizations only pay for goods and services that meet purchase agreements.
Stronger matching controls reduce duplicate payments, fraud, and overbilling by aligning purchase orders, invoices, and receipts before payment.
Automated matching improves accuracy and speed, helping finance teams eliminate manual checks and focus on high-value work.
Exception-driven workflows allow faster resolutions, enabling organizations to balance control with efficiency as they scale.
By the end of this article, you’ll understand when a two-way match is enough and when a three-way match is essential for compliance.
Why matching matters in procurement and payables
Without structured matching, even a single overlooked invoice can cause duplicate payments, lost revenue, or compliance issues. As per a Deloitte study, companies with stronger invoice controls experience up to 20% fewer supplier disputes and improved vendor trust.
Invoice matching creates a safeguard between what’s ordered, what’s received, and what’s paid. The challenge for most organizations lies in balancing speed and control.
What is a two-way match
A two-way match compares two key documents—the purchase order and the supplier invoice. If both align on quantity, price, and terms, the payment moves forward.
This approach is faster but assumes the goods or services were delivered as promised.
It’s similar to checking your restaurant bill against what you ordered, without verifying whether every dish actually arrived.
When two-way match works best
Two-way matching is best suited for:
- Low-risk or recurring purchases like subscriptions or software renewals
- Long-term, trusted vendors with consistent service quality
- Situations where speed and simplicity outweigh control complexity
The main risk is potential overpayment if deliveries are incomplete or undocumented.
What is a three-way match
A three-way match adds another layer of verification by including the goods receipt note along with the purchase order and invoice.
Payment only proceeds when all three documents match, confirming that what was ordered was actually received and invoiced correctly.
Think of it as verifying your restaurant bill, your order slip, and ensuring every dish was served before paying.
When three-way match works best
Three-way matching works best for:
- High-value or high-risk purchases
- Physical inventory or capital equipment
- Vendors with short engagement histories or new suppliers
The added effort provides tighter control and audit readiness, but it requires coordination between procurement, receiving, and finance.
Key differences between two-way and three-way match
Risks of getting it wrong
Using the wrong matching method can lead to costly errors. A logistics company using two-way match for spare parts once approved invoices for undelivered items. The dispute delayed vendor payments and strained relationships.
As McKinsey notes, organizations with structured procurement controls experience faster dispute resolution and reduced fraud exposure.
How automation simplifies matching
Manual matching often creates delays and data entry errors. Teams spend hours verifying invoices, tracking receipts, or chasing missing approvals. Automation eliminates those repetitive steps.
Automated workflows handle:
- Exception routing when mismatches appear
- Documented approvals with timestamps
- Centralized records for audits and compliance
Moxo simplifies this process through secure workflow automation and vendor portals. Its unified system connects purchase orders, invoices, and receipts, ensuring instant visibility and faster exception handling.
A G2 reviewer in accounting shared, “What used to take days chasing approvals now takes a few clicks—and everyone trusts the process.”
Popular AP automation and procurement matching software
Why AP automation tools matter now
As supply chains expand and vendor ecosystems grow, the old model of email-based approvals and paper invoices no longer scales. Modern AP automation platforms consolidate documents, approvals, and communication into one workflow—eliminating manual checks and reducing risk.
Here are some of the leading tools helping businesses modernize their two-way and three-way matching processes.
1. Moxo – For secure, exception-driven AP workflows
Moxo provides workflow automation and vendor portals that unify purchase orders, invoices, and receipts in one branded workspace. Designed for compliance-first organizations, Moxo streamlines exceptions without sacrificing control.
Key features:
- Hybrid two-way and three-way matching with automated exception routing
- Role-based, branded vendor portals for secure collaboration
- SOC 2, GDPR, and audit-ready logs
- No-code workflow builder with reminders and escalations
- Integrations with ERP and document systems
Best for: Finance, logistics, and consulting firms that value compliance and speed
Pricing: Flexible tiers; see Moxo pricing
Choosing between two-way and three-way matching shouldn’t slow your AP team down. Moxo helps standardize both methods, automating validation and routing exceptions before they reach finance approval.
Using workflow automation, Moxo automatically compares invoice, PO, and receipt data based on the matching rule you define. Integrations connect to ERP systems and procurement tools, syncing records in real time.
When mismatches occur, magic links let vendors or warehouse teams verify or correct data securely—no emails required. Each step is logged in audit-ready reports, keeping compliance intact.
Moxo turns matching from a manual verification task into a fully automated control system—ensuring consistency, faster cycles, and error-free reconciliation.
2. Coupa – For enterprise-wide spend management
Coupa offers cloud-based procurement and expense management with advanced spend analytics and supplier visibility.
Key features:
- AI-powered insights and sourcing optimization
- Global supplier network integration
- Deep spend visibility and compliance tracking
Best for: Large enterprises with complex global spend
Pricing: Custom enterprise pricing
3. Tipalti – For scaling global AP operations
Tipalti automates invoice processing, supplier management, and international payments.
Key features:
- Global payments in 120+ currencies
- Built-in tax and compliance modules
- Self-service vendor onboarding
Best for: Mid-market firms scaling internationally
Pricing: Starts around $149/month
4. SAP Ariba – For advanced enterprise procurement
SAP Ariba connects procurement, sourcing, and supplier management within the SAP ecosystem.
Key features:
- Supplier collaboration tools and advanced sourcing
- Integration with ERP and spend analysis modules
- Global compliance features for large-scale operations
Best for: Enterprises with global supply chains
Pricing: Quote-based enterprise pricing
5. Oracle NetSuite – For unified ERP and AP in one suite
NetSuite integrates AP automation into its broader ERP platform for seamless finance management.
Key features:
- End-to-end ERP, finance, and procurement integration
- Automated purchase order and invoice matching
- Configurable dashboards and approvals
Best for: Firms seeking an all-in-one ERP and AP solution
Pricing: Subscription-based; varies by modules
Comparison of leading AP automation tools
Building stronger AP controls with automation
Moxo helps organizations simplify invoice matching and vendor collaboration without adding complexity. Its secure workflow automation connects purchase orders, invoices, and receipts into one unified system—ensuring visibility, speed, and compliance.
Teams using Moxo report shorter approval cycles, reduced back-and-forth emails, and stronger audit trails. With its no-code workflow builder and exception routing, Moxo turns matching from a manual control into a proactive process improvement.
To see how Moxo transforms invoice matching and vendor collaboration, get started with Moxo.
