---
title: What to look for in AP software for purchase order matching
url: https://www.medius.com/videos/finance-insights/what-to-look-for-in-ap-software-for-purchase-order-matching/
updated: 2026-11-06T19:35:36Z
---
# What to look for in AP software for purchase order matching

Purchase order matching is one of the most important AP controls and easy to get wrong without the right software. Medius applies AI-driven line-level matching that reconciles invoices against POs and receipts and flags only genuine discrepancies.

- **Two-way vs. three-way:** Two-way compares invoice to PO for pricing and quantity and suits lower-risk purchases like services. Three-way adds the goods receipt and suits physical goods.
- **What to look for:** configurable tolerances (by vendor or category), line-level matching, partial receipt and shipment handling, and learning from resolved exceptions to reduce false flags; mismatches should be flagged, not block the whole invoice.
- **Line-level example:** a 100-unit invoice at the agreed price plus a $200 freight charge not on the PO. Invoice-level matching may pass it; line-level matching catches it.

**Key takeaway:** Weak matching leads to overpayments, duplicate payments, and missed pricing errors.

**Best for:** Finance teams evaluating PO matching software.

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Transcript

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Speaker 1

Purchase order matching is one of the most important controls in accounts payable and one of the easiest to get wrong without the right software.

Two-way matching compares an invoice to its purchase order, confirming pricing and quantities align. Three-way matching adds a goods receipt into the comparison, verifying that what was ordered was actually received before payment is issued.

Two-way matching tends to fit lower-risk purchases like services where there's no physical delivery to confirm. Three way matching is generally the better fit for physical goods where confirming receipt actually matters.

Not all matching engines are built the same. Finance teams should look for software that supports configurable tolerance levels, automatically flags mismatches instead of blocking the entire invoice, and learns from historical patterns to reduce false exceptions over time.

Line item level matching, rather than matching at the invoice total, catches discrepancies that would otherwise slip through.

Here's a common scenario. A vendor bills for a 100 units at the agreed price but adds a $200 freight charge that was never on the purchase order.

Invoice-level matching might waive the whole thing through because the total looks close enough to expected.

Line-level matching catches that $200 discrepancy specifically because it's comparing each line, not just the bottom line total.

A few questions separate a strong matching engine from a weak one.

Can tolerance thresholds be configured by vendor or category rather than applied the same way to everything?

Does the system match at the line level or only at the invoice total?

How does it handle partial receipts and partial shipments, which happen more often than most teams expect?

And does it learn from resolved exceptions so the same recurring mismatch doesn't require manual review every single time?

Weak matching controls lead to overpayments, duplicate payments, and missed pricing errors that add up quickly at scale. Medius applies AI-driven line-level matching that automatically reconciles invoices against POs and receipts, flags only genuine discrepancies, and reduces the manual review that slows down approvals.

Purchase order matching isn't just a compliance checkbox.

It's one of the strongest financial controls an AP team has.

Software that automates matching accurately at the line level gives finance teams both speed and confidence in every payment they make.

## Explore more:

### [See AI at work in Medius](https://www.medius.com/ai-innovation/ "Innovation and AI")

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### [Explore AP automation solutions](https://www.medius.com/solutions/medius-accounts-payable-automation/ "Medius Accounts Payable Automation")

Learn how Medius reduces manual work and increases touchless processing.

### [Improve performance with benchmarks](https://www.medius.com/customers/ap-benchmark-report/ "AP Benchmark Report")

Understand how KPIs and automation metrics drive measurable results.

### [Discover the Medius platform](https://www.medius.com/solutions/ "Solutions")

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[Watch more videos](https://www.medius.com/videos/ "Watch more videos")

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