Value Proposition: 3-Way Match is not a “comparison sheet”; it is a control point that prevents two recurring errors: Invoices without Receipts (Invoice before GRN) and Receipts without Invoices (GRN without Invoice) that turn into unexplained GR/IR and Accruals at closing. This 3-Way Match Template builds a clear operational journey: upload PO, upload GRN, upload invoices, then reveal price, quantity, and tax discrepancies, and determine processing decisions (Hold/Partial approval/GR correction/CN) with accounting impact and control delivery within procurement controls.

In 20 Seconds: What Will You Get?

• 3-Way Match Template at the line level (PO line ↔ GRN line ↔ Invoice line).
• PO and GRN and Invoice Matching with clear IDs (PO# / GRN# / Invoice#) and link logic.
• Price and Quantity Discrepancies: Price variance / Qty variance / Tax variance with adjustable tolerances.
• Invoices without Receipts: List of Invoice pending GRN (to be held or partially approved based on policy).
• Receipts without Invoices: List of GRN not invoiced as a basis for GR/IR accruals at Month-End.
• Vendor Invoice Approval: Approval form that documents the matching result (Matched/Hold/Partial) and who approved it.
• Procurement Controls: Exception log + owner/actions + evidence index + sign-off for delivery.

CTA related to outputs: Receive Matching report + Variance log + Invoice approval + GR/IR accrual list + Month-End pack.

Suitable For

• Accounts Payable (AP): Vendor invoice approvals based on clear matching and documentation of Hold/Partial decisions.
• Procurement + Receiving: Clarifying price/quantity discrepancies and assigning responsibility (PO change vs GRN correction).
• Head of Accounts / Controller: Filtering GR/IR and Accruals before closing and delivering a reviewable Exceptions file.

Not Suitable For

• If your company only relies on services and there is no GRN or documented service acceptance — you will need 2-Way match + Service acceptance instead of 3-Way.
• If you want automated matching within ERP with Workflows — this Toolkit is external (Excel) and used as a control/analytical layer.

Without Toolkit / With Toolkit (Brief Comparison)

Before Use: 5 Symptoms That Matching Causes Recurring Exceptions in AP and Month-End

• Invoices received in AP without GRN or without PO number, and paid as undocumented exceptions.
• Price and quantity discrepancies appear late: invoice higher than PO or GRN lower than invoice without processing before payment.
• Many receipts without invoices (GR not invoiced) leading to accumulating GR/IR and Accruals without a reviewable list.
• No written tolerances, turning every minor difference into a dispute or passing unchecked.
• Upon review: there is no “matching decision” proving why an invoice was approved despite discrepancies.

How to Implement 3-Way Match Practically and Handle Discrepancies?

The approach starts with uploading PO/GRN/Invoice data at the line level and then identifying the linking key (PO# + PO line / Item). Then, the matching status is calculated: Fully matched, Partially received, Invoiced before receipt, Price variance, Qty variance. For each status, there is a clear operational decision: Hold invoice, Partial approval, Request PO change, Correct GRN, Issue CN, or evidence accrual. In Week-4, the Toolkit produces two key lists: “GRN not invoiced” as a basis for GR/IR and “Invoice pending GRN” to filter invoices without receipts before closing.

Implementation Method (3 Steps)

Step 1: Preparation and Report Gathering

• Extract PO lines (PO#, line#, item/service, qty, price, promised date).
• Extract GRN lines (GRN#, PO reference, received qty, receipt date, accepted/rejected if any).
• Extract Invoice lines (Invoice#, PO reference, invoiced qty, price, tax, invoice date).
• Define tolerances: allowed price/quantity differences + who is authorized to approve exceptions.

Step 2: Matching + Variance Logs + Invoice Approval

• Run 3-Way Match Template to produce Match status for each line.
• Output Price and Quantity Discrepancies:
  • Price variance: Invoice price − PO price.
  • Qty variance: Invoiced qty − Received qty.
  • Tax variance: Tax difference per PO/Invoice (as per your controls).
• Generate action lists:
  • Invoices without Receipts: Invoice pending GRN (Hold/Partial approval).
  • Receipts without Invoice: GRN not invoiced (Accrual candidate).
• Fill out the Vendor Invoice Approval form based on the matching result (Matched/Hold/Exception) with reason and attachments.

Step 3: Month-End Pack + GR/IR + Procurement Controls

• Output GR/IR accrual list: Value of receipts not yet invoiced with PO/GRN references.
• Output Invoice holds list: Invoices on hold due to non-receipt/significant discrepancies + Owner + ETA for resolution.
• Compile Month-End 3-Way Match pack: matching summary + variance log + accrual list + exceptions + sign-off + evidence index.

Toolkit Components (Clear Inventory)

1. PO Import & Standardization
   • Practical Purpose: Upload PO and standardize fields (PO#/line/item/qty/price) as a source for matching.
   • When to Use: With every new batch of invoices or weekly.
   • Resulting Evidence: Dated PO dataset.
2. GRN Import & Receipt Status
   • Practical Purpose: Upload GRN and show received/accepted/rejected to support receipt quality.
   • When to Use: Daily/Weekly depending on the volume of receipts.
   • Resulting Evidence: GRN dataset + receipt status.
3. Invoice Import & Tax Fields
   • Practical Purpose: Upload invoice at the line level and link it to the PO/line.
   • When to Use: Daily in AP.
   • Resulting Evidence: Invoice dataset + completeness checks.
4. 3-Way Match Engine (Matching PO and GRN and Invoice)
   • Practical Purpose: Produce match status for each line and convert it into an operational decision.
   • When to Use: Before approving any invoice.
   • Resulting Evidence: Deliverable matching report.
5. Variance Log (Price and Quantity Discrepancies)
   • Practical Purpose: Record discrepancies with tolerances and processing decision (Hold/Approve/Request CN/PO change).
   • When to Use: During matching and before payment.
   • Resulting Evidence: Variance log + owner + action + closing status.
6. Invoice Approval Pack (Vendor Invoice Approval)
   • Practical Purpose: Document approval decision based on matching result and reviewer/approver signature.
   • When to Use: For each invoice or for a sample review based on policy.
   • Resulting Evidence: Invoice approval form + references.
7. GRN Not Invoiced & GR/IR Accruals
   • Practical Purpose: List of receipts without invoices as a basis for accrual/GRIR entry at Month-End.
   • When to Use: Week-4/Month-End and Year-End.
   • Resulting Evidence: Accrual list linked to PO/GRN.
8. Invoice Pending GRN (Invoices without Receipts)
   • Practical Purpose: Prevent payment before receipt or enforce documented exceptional approval.
   • When to Use: Daily + before Payment run.
   • Resulting Evidence: Hold list + approvals/exceptions.
9. Controls & Month-End Pack (Procurement Controls)
   • Practical Purpose: Transform matching into a deliverable control file: exceptions + decisions + sign-off.
   • When to Use: Month-End and Quarter-End.
   • Resulting Evidence: 3-Way match closing pack section.

What Should Be Included in the Delivery?

• 01-3Way-Match-Toolkit.xlsx: Main matching file (PO/GRN/Invoice) + Match statuses.
• 02-PO-Import-Template.xlsx: Template for uploading PO lines + mapping.
• 03-GRN-Import-Template.xlsx: Template for uploading GRN lines + acceptance/rejection.
• 04-Invoice-Import-Template.xlsx: Template for uploading Invoice lines + tax fields.
• 05-Variance-Log.xlsx: Price and quantity discrepancies + tolerances + processing decision + owner.
• 06-Invoice-Pending-GRN-Hold-List.xlsx: Invoices without receipts + processing status + approvals.
• 07-GRN-Not-Invoiced-Accruals.xlsx: GRN not invoiced + basis for GR/IR accrual.
• 08-Exception-Decision-Log.xlsx: Log of exception decisions (Approve/Hold/CN/PO change).
• 09-Invoice-Approval-Form.docx: Vendor invoice approval form based on matching result.
• 10-Evidence-Index.xlsx: Evidence index (PO/GRN/Invoice copies) + links.
• 11-MonthEnd-3Way-Match-Pack.xlsx: Closing summary + sign-off + exception lists.
• 12-Runbook.pdf: Practical run (Import → Match → Decide → Hold/Approve → Month-End pack).
• 13-Controls-Checklist.pdf: Procurement control points related to matching + tolerances + approvals.
• 14-Archiving-Map.docx: Archiving tree (Year/Month/P2P/3WayMatch/Evidence) + Naming convention.
• 15-Signoff-Page.docx: Prepared/Reviewed/Approved + Period scope.

After Implementation (Two Points Only)

• Operational Outcome for the Team: Vendor invoice approval becomes a decision based on Match status: what is paid and what is held and why, with handling of price and quantity discrepancies before payment instead of discovering them after closing.
• Control/Audit Outcome: You have Evidence for every invoice: PO + GRN + Invoice + variance log and tolerance decision, and a list of GRN not invoiced as a basis for accruals—all within a traceable Month-End pack.

FAQ — Questions Before Purchase

Is the Toolkit suitable for any ERP?

Yes, as long as you can extract PO/GRN/Invoice lines. The tool operates as a matching and documentation layer over the system via Exports.

Is the matching done at the document level or line level?

It is designed at the line level as this is the way to accurately reveal price and quantity discrepancies, with the option to aggregate them to the document level for reporting.

Does it support tolerances (allowed differences)?

Yes. You can define tolerances for price/quantity/tax and who is authorized to approve exceptions within procurement controls.

How does it handle invoices without receipts?

It produces a list of Invoices without Receipts (Invoice pending GRN) with options: Hold, partial approval, or documented exceptional approval based on policy.

Does it generate a GRN not invoiced list for accruals?

Yes. This list is used as a basis for GR/IR or accruals at Month-End with reviewable PO/GRN references.

Does it include vendor invoice approval?

Yes, there is a Vendor Invoice Approval form that documents the matching result and processing decision with signatures.

Is it suitable for goods and services?

For Goods, it is excellent with GRN. For services, GRN can be replaced with a Service Acceptance document, or apply 2-Way match depending on the nature of the service.

Is this an alternative to 3-Way Match within ERP?

It is not an alternative; it is a Toolkit that helps you analyze, document, and handle discrepancies, especially if system settings are incomplete or require higher transparency in exceptions.

Ready to Prevent Payment Before Receipt and Close GR/IR with Clear Evidence?

Outputs: 3-Way match report + price and quantity variances + invoice holds + GRN not invoiced + Month-End pack.