3-Way Matching Automation
Automatically match invoices to POs and receipts. Resolve discrepancies before they become problems.
3-way matching is essential for AP control, but manual matching is time-consuming and error-prone. Nexus AP automates the matching process, instantly comparing invoices to purchase orders and goods receipts.
The Challenge
Manual 3-way matching requires staff to locate and compare three separate documents for every invoice. This takes time, creates bottlenecks, and often results in exceptions that delay payment.
The Solution
Nexus AP automatically matches invoices to POs and receipts based on configurable tolerances. Clean matches flow straight to payment. Exceptions are flagged with specific discrepancy details for quick resolution.
How It Works
Invoice Received
Invoice is captured and data extracted automatically
Invoice sits in inbox or mail pile waiting for processing
Invoice processed instantly upon receipt
PO Lookup
System identifies the corresponding purchase order
Staff manually searches for PO in ERP system
AI matches invoice to PO automatically
Receipt Matching
Goods receipt compared to invoice quantities
Manual comparison of receiving documents
Automatic quantity and amount comparison
Exception Handling
Discrepancies identified and routed for resolution
Exceptions discovered late, require research
Exceptions flagged immediately with details
Key Features
Automatic PO matching
Match invoices to POs by number, vendor, or line items
Configurable tolerances
Set acceptable variance thresholds for price and quantity
Line-level matching
Match individual line items, not just header totals
Partial receipt handling
Support for partial deliveries and backorders
Exception workflows
Route exceptions to the right people for resolution
Audit documentation
Complete matching history for every invoice
Benefits
Faster processing
Auto-matched invoices skip manual review entirely
Fewer errors
Eliminate human error in document comparison
Quicker resolution
Exceptions identified immediately with full context
Better compliance
Consistent matching process with complete audit trail
ROI Impact
| Metric | Before | After | Improvement |
|---|---|---|---|
| Matching time | 15-20 min/invoice | Instant | 99% reduction |
| Auto-match rate | N/A (all manual) | 70-80% | 70%+ touchless |
| Exception resolution | 3-5 days | 1 day | 3-5x faster |
| Matching accuracy | 92-95% | 99%+ | Near-perfect |
Frequently Asked Questions
What matching tolerances can I set?
You can configure price tolerance (e.g., ±2%), quantity tolerance, and line-level vs header matching. Tolerances can vary by vendor, commodity type, or amount threshold.
How do you handle invoices without POs?
Non-PO invoices can follow a separate approval workflow based on amount, vendor, or expense category. You control when PO matching is required vs optional.
What happens when there's a discrepancy?
Exceptions are flagged with specific details (e.g., "Invoice quantity 100 exceeds PO quantity 95"). Exceptions route to the appropriate person for resolution with full document access.
Category
AccuracyRelated Use Cases
Works With
Popular Industries
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