3-Way and 2-Way Invoice Matching
Check vendor invoices against the purchase order and, where applicable, the goods received note before approval. Review the invoice, select Match Invoice, and BillsLinked compares the relevant quantities and prices, then shows you exactly where the invoice stands.
How it works in BillsLinked
- 01
Review
Your team reviews the invoice and its supporting documents.
- 02
Match
Select Match Invoice. BillsLinked compares the invoice with the PO and, where applicable, the GRN.
- 03
Result
See the outcome: Matched – Auto Approved, Matched, or Variance.
- 04
Approval
Matched invoices within your auto-approval limit are approved; others go through your approval workflow.
- 05
ERP export
Approved invoices can be exported to your ERP.
What is 3-way matching?
3-way matching compares three documents before an invoice is approved: the purchase order (PO), the goods received note (GRN) or purchase receipt, and the vendor invoice. It confirms you're paying only for what you ordered, at the agreed price, and for what was actually received.
What is 2-way matching?
2-way matching compares the vendor invoice against the purchase order only. In BillsLinked, 2-way matching is used for service invoices where there is no goods receipt to match against.
When BillsLinked uses each
| Invoice | What's needed | Matching |
|---|---|---|
| Goods purchase | PO + GRN / purchase receipt | 3-way matching |
| Service, with a PO | PO | 2-way matching |
| Service, without a PO | — | Sent to your approval workflow |
Matching runs when your team chooses. After reviewing the invoice, a user selects Match Invoice and BillsLinked performs the comparison.
No receipt, no match
If a goods invoice has no GRN, BillsLinked flags that the receipt was not found instead of treating the invoice as successfully 3-way matched.
Every match has a clear result
The invoice matches, and its amount is within your auto-approval limit.
Approved — no further step.
The invoice matches, but auto-approval is off or the amount is above your limit.
Send it through your approval workflow.
Price or quantity differs from the PO or GRN by more than your tolerance.
Your team reviews the difference.
Set your own matching rules
Tolerance
Decide how much price or quantity difference you'll accept, as a percentage. Differences within your tolerance count as matched. Set it to 0% to require an exact match.
Auto-approval — only if you want it
Auto-approval is off by default. Turn it on and set an amount limit: invoices that match and fall within that limit can be approved automatically. Anything above it goes through your normal approval workflow.
From match to your ERP
BillsLinked works alongside your ERP — your ERP remains your financial system of record.
Once an invoice is approved, it can be exported to your ERP. Every action — including matching, approval and export — is recorded.
How BillsLinked works with your ERP →Invoice matching questions, answered
What is the difference between 2-way and 3-way matching?
2-way matching compares the invoice with the purchase order. 3-way matching also checks the goods received note, confirming the goods were actually received before the invoice is approved.
Does BillsLinked match invoices automatically?
No. Your team stays in control: a user reviews the invoice first, then selects Match Invoice, and BillsLinked runs the match in one click.
Can I allow small differences between the invoice and the PO?
Yes. Set a tolerance percentage. Differences within it count as matched; anything beyond it is flagged as a variance. A tolerance of 0% requires an exact match.
Are matched invoices approved automatically?
Only if you turn auto-approval on. You set an amount limit, and only matched invoices within that limit are approved automatically. Everything else goes through your approval workflow.
What happens to service invoices without a purchase order?
They are sent to your approval workflow, where you can track which approvers have approved, rejected or are still pending.
Can BillsLinked detect duplicate invoices?
Yes. The Control Panel flags possible duplicate invoices, alongside invoices waiting for approval, vendors with missing documents and contracts nearing expiry.
Can an invoice go to more than one approver?
Yes. You can set one or more approvers per invoice to match your approval process. Approvers get an email notification and can review the invoice and its supporting documents on one screen.
Which ERP systems does BillsLinked work with?
BillsLinked has been tested successfully with ERPNext and Odoo. It connects to your ERP through a secure integration, keeps the relevant data in sync, and approved invoices can be exported to it.