The Procurement Glossary » Two-Way Matching

Two-Way Matching

Procure-to-Pay

Definition

An invoice check comparing only the purchase order and the invoice, used where a goods receipt is not applicable (e.g. services).

Explanation

Two-way matching verifies that the invoice matches the PO on price and quantity, without a receipt leg. It suits services and low-risk categories, trading some control for speed. Higher-risk goods use three-way matching.

Example

A monthly software subscription invoice is two-way matched to its PO and paid without a goods receipt.

Related terms

• Three-Way Matching — An invoice-control check comparing the purchase order, the goods-receipt record and the supplier invoice before payment.
• Purchase Order (PO) — A buyer's official document authorising a purchase from a supplier, stating items, quantities, prices and terms; once accepted it forms a contract.
• Invoice — A supplier's bill requesting payment for goods or services delivered, itemising what was supplied and the amount due.
• Invoice Approval — The step of authorising a matched (or exception) invoice for payment, per policy and delegation of authority.

Frequently Asked Questions

What is Two-Way Matching?

An invoice check comparing only the purchase order and the invoice, used where a goods receipt is not applicable (e.g. services). Two-way matching verifies that the invoice matches the PO on price and quantity, without a receipt leg. It suits services and low-risk categories, trading some control for speed. Higher-risk goods use three-way matching.

Can you give an example of Two-Way Matching?

A monthly software subscription invoice is two-way matched to its PO and paid without a goods receipt.

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