---
title: What is the difference between 3-way matching and 2-way matching in accounts payable?
url: https://www.medius.com/videos/finance-insights/what-is-the-difference-between-3-way-matching-and-2-way-matching-in-accounts-payable/
updated: 2026-09-10T15:36:29Z
---
# What is the difference between 3-way matching and 2-way matching in accounts payable?

This video explains the fundamental concepts of 2-way and 3-way matching processes used by accounts payable teams to verify invoice accuracy before payment. It covers how 2-way matching compares invoices to purchase orders, while 3-way matching adds verification against goods receipts to confirm actual delivery. The explanation highlights the importance of these matching processes for preventing overpayment and fraud, discusses challenges with manual matching including time consumption and errors, and introduces how modern AP automation systems can streamline these processes with real-time comparisons and tolerance levels for improved speed and accuracy.

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Transcript

2-way and 3-way matching are processes used by accounts payable teams to verify that invoices are accurate before payment is made.

A 2-way match compares the invoice to the purchase order, checking that the quantities and prices align with what was originally agreed. A 3-way match adds a third step by also comparing the invoice and purchase order to the goods receipt, confirming that the items were actually received.

The main difference is that 2-way matching verifies what was ordered and billed while 3-way matching also verifies what was delivered. This additional step helps ensure that businesses only pay for goods or services that have been received.

Matching is critical for maintaining accuracy in the accounts payable process.

Without proper matching, organizations risk overpaying, paying for items not received, or missing discrepancies that could lead to financial loss or fraud.

Manual matching can be time-consuming and prone to error, especially when dealing with large volumes of invoices or partial deliveries. Delays in matching can also slow down approvals and impact payment timelines.

Modern AP automation systems handle 2-way and 3-way matching automatically by comparing invoice data against purchase orders and receipts in real time.

These systems can also apply tolerance levels and flag discrepancies for review improving both speed and accuracy.

2-way and 3-way matching are essential controls in accounts payable, helping ensure invoice accuracy before payment and automation makes these processes faster, more reliable, and easier to manage at scale.

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