Three-Way Match
Definition
Checking that the purchase order, the receiving record and the supplier's invoice all agree on items, quantities and prices before paying a bill.
Want a deeper explanation?
Three-way match is a simple control that catches overbilling, short shipments and price creep before the money leaves.
It depends on recording receipts accurately when goods arrive. Watch for: supplier balances paid in full on bills nobody compared to what was received.
Example
The PO says 5,000 units at $6.20, the warehouse received 4,850, and the invoice bills 5,000. The match flags 150 units you should not pay for.