Procurement

Three-way Matching Agent

Captures incoming invoices, runs three-way match against POs and goods receipts, and queues clean invoices for payment.

Ingests supplier invoices from email, EDI, or portal, extracts and validates header and line data, then matches each line against the referenced purchase order and goods receipt in the ERP. Invoices that pass within tolerance are approved and queued for payment. Mismatches are diagnosed and routed to the responsible owner. Also reconciles supplier statements against the AP ledger to catch missing or duplicate invoices.

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The Invoice Matching Agent handles the core accounts-payable matching workflow. It receives supplier invoices in PDF, XML, or EDI 810 format, extracts header and line-item data, normalizes currencies, units of measure, dates, and tax codes, and validates the supplier identity against ERP master data. It then performs a three-way match — comparing billed price, quantity, and unit of measure on each invoice line against the corresponding PO line and goods receipt. Invoices that clear all checks within tolerance are approved and posted to the ERP for the next payment run. Where mismatches are found, the agent diagnoses the specific cause (price drift, partial receipt, UoM discrepancy, duplicate invoice) and routes the exception to the appropriate owner. When supplier periodic statements arrive, the agent compares the supplier's open-items list against the AP ledger, identifying invoices to chase, payments to confirm, or credits to apply.

KPI it moves

  • +60–80 pts

    Invoice touchless rate

    Most PO-backed invoices get matched, approved, and queued for payment without anyone touching them.

What it does

  • Captures and registers incoming supplier invoices

    Receives invoices via email, EDI, or supplier portal, extracts header and line-item data, validates the supplier against master data, screens for duplicate invoice numbers, and registers each invoice in the ERP against the referenced PO.

  • Runs three-way match on every invoice line

    Compares billed price, quantity, and unit of measure on each invoice line against the corresponding PO line and goods receipt in the ERP. Lines that match within tolerance are approved for payment; mismatches are diagnosed with the specific cause.

  • Reconciles supplier statements against the AP ledger

    When a supplier sends a periodic statement, compares their open-items list against the AP ledger to identify missing invoices, unrecorded payments, or credits that need to be applied.

  • Routes match exceptions to the responsible owner

    For invoice lines that fail the three-way match, calculates the financial delta, diagnoses the root cause, and writes the flagged exception to the AP workflow, directing it to the buyer or AP clerk for resolution.

How it works

  1. Trigger 1

    Supplier invoice arrives

    A new invoice lands in the AP inbox or is pushed to the ERP via email, EDI feed, or supplier portal in PDF, XML, or EDI 810 format.

  2. Trigger 2

    Supplier periodic statement received

    A supplier sends an account statement listing their view of open items, triggering a comparison against the AP ledger.

  3. Step 1

    Extract, validate, and register the invoice

    Reads the invoice header and every line item, normalizes currencies, units of measure, dates, and tax codes, and matches the supplier identity against ERP master data. Checks the referenced PO number exists and belongs to this supplier, screens for duplicate invoice numbers, and registers the invoice in the ERP.

  4. Step 2

    Run three-way match across every line

    For each registered invoice line, compares billed price, quantity, and unit of measure against the corresponding PO line and the goods receipt recorded in the ERP. Identifies the specific cause of each mismatch: price drift, partial or missing goods receipt, unit-of-measure discrepancy, or duplicate billing.

  5. Step 3

    Approve clean lines and route exceptions

    Lines that match within tolerance are approved and the invoice is posted to the ERP for the next payment run. For mismatches, calculates the financial delta and writes the flagged item to the AP workflow, directing it to the buyer or AP clerk based on the exception type.

  6. Resolution

    Invoice posted or exception routed for resolution

    Clean invoices are posted to the ERP with correct GL account, cost center, and payment terms, and enter the next payment run. Exceptions are flagged with diagnosis and financial impact, and routed to the responsible owner.

Why it matters

  • Most PO-backed invoices matched and approved without manual review

    so that AP staff focus on genuine exceptions rather than re-keying and verifying every invoice line.

  • Supplier statements reconciled automatically

    so that missing invoices are chased promptly, duplicate payments are prevented, and the AP ledger stays in sync with supplier records.

What it needs

Read/write access to the ERP
Connects to the ERP (e.g. Infor LN/M3/CloudSuite, Microsoft Dynamics 365, IFS Cloud, or SAP S/4HANA) to read purchase orders, goods receipts, and AP ledger open items, and to write back matched invoices and exception flags. Without this connection the agent cannot perform invoice matching.
Inbound invoice feed
Receives supplier invoices in structured form from the accounts payable inbox, EDI gateway, or invoice capture platform (e.g. Basware, Tungsten, Tradeshift). The agent cannot process invoices it has not received in a machine-readable format.
Dispute and exception routing access
Writes flagged exceptions and calculated financial impacts to the workflow or ticketing system used by AP staff and buyers (e.g. ServiceNow, the ERP workflow module, or an AP automation platform). Without write access, flagged items cannot be routed for resolution.
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