Glossary
What is two-way matching?
By Tim White · Last updated
Two-way matching checks an invoice against its purchase order before payment: same items, same quantities, same prices. If the two agree, the invoice clears. It is the lighter cousin of three-way matching, which adds a receiving report to confirm the goods showed up.
When two-way is enough
Two-way matching fits services and anything with no physical delivery to receive against: a monthly retainer, a software subscription, a consulting fee. There is no shipment to inspect, so the purchase order and the invoice are the whole story.
Why the numbers have to be right
A match is only as good as the invoice data behind it. Mis-read the total or a line item and the check passes on a wrong number. InvoiceJet extracts those fields with a confidence level and a source citation, so you match against verified figures.
Common mistakes
Two mistakes make a two-way match look clean when it is not. The first is matching only the total and skipping the line items: a retainer billed at the right total can still list the wrong month or the wrong rate. The second is matching against a stale purchase order after the contract was amended. The PO has to reflect the current agreement, or you are checking the invoice against a number nobody agreed to anymore.
Common questions
Two-way or three-way?
Three-way for physical goods you receive; two-way for services and anything without a delivery step. Plenty of teams run both and pick per vendor.
What documents does two-way matching use?
Just two: the invoice and the purchase order that authorized it. There is no receiving report, which is why it suits services and other spend with nothing physical to receive against.
Does two-way matching catch overbilling?
It catches an invoice that charges more than the purchase order agreed, in quantity or price. It cannot confirm the goods or services were actually delivered, since no receiving report is part of the check.
Sources
Keep reading
Turn your next invoice into verified data
Free for 10 invoices a month, no card. Every field carries a confidence level and cites its source.