Automatic Invoice Matching: How 3-Way Matching Works in Practice

Most businesses have a system for invoice handling. Yet finance teams still spend hours every week manually verifying that invoices match what was ordered. Why? Because the invoice system only sees half the picture.

In this article, we explain what automatic invoice matching is, how 3-way matching works in practice, and what results Norwegian companies achieve when the entire chain is connected.

What is invoice matching?

Invoice matching is the process of verifying that an invoice corresponds to what was actually ordered and delivered. In practice, this means comparing three documents:

• The purchase order — What was ordered, at what price, and by whom?
• The goods receipt — Were the goods or services actually delivered?
• The invoice — Does the amount match what was agreed and delivered?

When all three align, the invoice can be approved and paid. When they don't, you have a discrepancy that needs handling — and that's where most companies waste unnecessary time.

Why can't the invoice system handle this alone?

Most invoice handling systems are built to manage the invoice. They digitise it, route it to the right person, and track approval workflows and payments.

But they lack the other half: the order and goods receipt. Without this connection, someone must manually verify:

• Is the invoice price the same as the agreed price?
• Were all goods delivered?
• Is the quantity correct?
• Who actually ordered this?

The result is manual work, delayed approvals, and discrepancies discovered too late.

What is 3-way matching?

3-way matching is the method where three documents are compared automatically:

When all three documents align — correct price, correct quantity, correct supplier — the invoice is approved automatically and sent to ERP for payment. No manual verification needed.

What happens when there's a discrepancy?

Automatic matching doesn't mean everything is blindly approved. On the contrary — the system catches discrepancies that humans easily miss:

• Price discrepancy: Invoice is higher than agreed price → buyer is notified
• Quantity discrepancy: Invoiced for 100 units, but only 80 received → held back
• Missing receipt: Invoice without registered goods receipt → cannot be approved
• Wrong supplier or reference: Mismatch between order and invoice → flagged

Discrepancies are automatically routed to the right person for handling — without delaying all other invoices.

How automatic invoice matching works in Vieri

In Vieri, 3-way matching is an integrated part of the entire procurement process:

Results from Norwegian companies

"With automatic invoice matching, we save an enormous amount of time. Invoices that match the order are approved automatically, and we avoid manual processing."

– Jorunn Hellum, Category Manager, Olav Thon Gruppen

"If we find ways to save just one minute per invoice, that means over 5,000 hours per year."

– Sindre Knutzen, Digitalisation Advisor, Skanska

Porsche Norway was already using Compello for invoice handling but lacked control on the ordering side. With Vieri, they gained full traceability from order to payment — without replacing their invoice system.

What does this mean in monetary terms?

Let's take a concrete example:

For many companies, automatic 3-way matching means millions in savings — plus hundreds of work hours freed up per year. Read more about the real costs of manual procurement →

Invoice system vs. P2P system: What's the difference?

Many companies think they've solved invoice handling. But there's a difference between handling the invoice and controlling the entire purchase:

A P2P system (procure-to-pay) covers the entire chain from order to payment. You don't need to replace your invoice system — but you need something that connects it to the rest of the procurement process.