A supplier invoice needs to match what was ordered and received.
Processing an invoice takes more than reading its total. The right documents need to be found, their information compared and discrepancies given a clear next step.
What was ordered, what was received and what was invoiced need to be comparable.
A supplier invoice arrives as a PDF. Your team needs to find the purchase order, consult receipts and understand why the amounts differ. Reading the document is one part of that work.
A Progymédia client already uses a workflow of this kind: read the invoice, find the order and receipts, check the matches, then record the invoice with its PDF when the rules permit. Discrepancies remain visible for review. Here are the design decisions behind that approach.
Identify the invoice before matching its lines.
The supplier name, invoice number and purchase order reference help identify the document. Extracting them prepares the search; it does not replace verifying which record the invoice belongs to. A missing or ambiguous reference needs to be open to review before the next step.
An invoice received again needs to be recognized before it creates a duplicate. The identifiers and recovery process need to be defined with the management system and the people responsible for accounts payable.
Compare the invoice, purchase order and receipt.
Three-way matching connects what was ordered, what was received and what is being invoiced. Each document answers a different question. A purchase order describes the expected purchase; a goods receipt records merchandise received; the invoice states the supplier’s request.
The comparison needs to reach the appropriate level: item references, quantities, units and amounts. Identical totals do not prove that the lines match. A difference also needs an explanation before it can be classified. The available information and the links between documents determine what matching can verify.
Three documents, three questions to reconcile
01Purchase orderWhat was expected to be purchased, in which units and under which terms?
02Goods receiptWhich goods have been recorded as received?
03Supplier invoiceWhich lines and amounts is the supplier asking to have processed?
Document links, tolerances and review rules need to be defined with the people responsible for the process.
A partial receipt changes the comparison.
One purchase order can lead to several receipts. An invoice may also cover only some lines or quantities. The comparison needs to use the elements actually linked to the record rather than assume that the entire order arrived at once.
When an invoiced quantity does not match the available receipts, the workflow should show the difference and the supporting documents consulted. The next step depends on the agreed process: wait for information, correct a link or have someone review the case. That response needs to be defined with the team, not inferred simply because a document can be read.
Define what a discrepancy means for your business.
Rounding, tax calculations and differences in amounts can produce different kinds of variances. Tolerances and review rules need to be defined with your accounting team for the operations involved. The system needs explicit conditions to determine what can continue and what needs review.
The result must also be explainable. Which line differs? Which values were compared? Which rule sent the case to a person? A general “does not match” label offers little help. A discrepancy presented with its documents and the reason it was flagged prepares the person for a more informed intervention.
Record the invoice and keep its PDF linked to the case.
In the workflow already used by this client, the invoice can be recorded with its PDF when the agreed conditions are met. Keeping that document with the record lets the team find what was received and verify the information that supported processing.
Recording an invoice in accounts payable is separate from making a bank payment: the matching described here does not trigger a transfer of money. Access permissions, approvals and confirmations for each operation need to remain identifiable.
Choose a scope that reveals real discrepancies.
To examine a similar need, we would gather complete cases alongside ones requiring intervention: a partial receipt, a missing reference or documents that do not agree. The person processing invoices needs to judge whether the supporting information is sufficient and the next steps are clear.
Boutik can provide a foundation for connecting the information and tools involved without assuming your ERP must be replaced. Interfaces, available documents and accounting responsibilities shape the project. The initial goal is a verifiable workflow, an accurate record status and exceptions the team can actually handle.
Bring these documents to a first conversation
✓ An invoice and the purchase orders and receipts associated with it.
✓ An example involving a partial receipt or documents that do not agree.
✓ Tolerances and review rules to clarify with the accounting team.
✓ The PDF location and identifiers used to avoid duplicates.
✓ The expected status after recording and the person responsible for discrepancies.
