Three-way match
What is a three-way match in construction?
A three-way match is a control that compares three documents, the purchase order (PO), the goods receipt note (GRN), and the vendor's bill, before a payment is approved. If the quantity and rate agree across all three, the bill is cleared; if they do not, it is held for review. It stops a builder paying for goods never received or billed above the agreed rate.
The three documents
The purchase order records what was ordered, at what rate. The goods receipt note records what actually arrived on site. The vendor bill records what is being charged. A match means all three agree.
Why it matters
Without matching, bills get paid on trust, and overbilling, short deliveries and rate creep slip through. The three-way match makes each payment defensible: you only pay for goods you ordered, received, and were charged for correctly.
What happens on a mismatch
A mismatch (say the bill is for more than was received, or above the PO rate) flags the bill and holds it, so someone reconciles the difference before any money moves.
How Fortera does it
Fortera runs the three-way match automatically: purchase orders, goods receipts and vendor bills are linked, and a bill cannot clear for payment until the quantities and rates reconcile.
Related questions
A little more detail.
- What is the difference between a two-way and three-way match?
- A two-way match compares only the purchase order and the bill. A three-way match adds the goods receipt, so it also confirms the goods physically arrived, which is what catches short deliveries.
- Does three-way matching slow down payments?
- When it is automated, no. Matching happens as documents are entered, so clean bills clear immediately and only genuine mismatches are held, which is exactly where a pause is wanted.