One of the biggest issues we see in accounts payable is slow vendor bill approvals. It often comes down to missing data or mismatched documents. Using a three-way match process solves this problem. It helps compare purchase orders, item receipts, and vendor bills all in one place. If your company uses purchase orders in NetSuite, this method helps improve accuracy, speed up approvals, and protect against billing mistakes.
Understanding How Three Way Match Works
A three-way match ties together the purchase order, the item receipt, and the vendor bill.
Each part plays a role:
- Purchase Order: What you agreed to buy.
- Item Receipt: What was actually delivered.
- Vendor Bill: What the vendor is charging you.
NetSuite compares these three documents. If everything lines up, the bill is approved. If not, it flags a mismatch so your team can review the issue.
We recommend a three-way match because it adds control. It helps your accounting and operations teams stay aligned. You do not want to pay for something that was not received or ordered.
Key Questions About AP Automation Vendors
Before we help clients set up this process, we ask: are you using an AP automation vendor?
Some companies use NetSuite Bill Capture. Others use third-party software. These tools may already offer a version of the three-way match, but it is often basic.
So the real question is, where should the match approval happen?
- Should it live inside your AP automation tool?
- Or should it happen in NetSuite?
If you are already doing other approvals in that vendor tool, keeping it there might make sense. But for full control and more detailed matching, we often recommend keeping it within NetSuite.
Managing Partial Shipments in the Matching Process
Most companies receive partial shipments. It is normal. But not every system manages that well.
In NetSuite, we help set up a process that does not flag partial shipments as problems. You can still match the PO, the receipt, and the bill even if the full order has not been delivered yet.
This is a key point to review. Your system should allow flexibility while still keeping good control.
Pro Tip: If your vendor ships in parts, make sure your three-way match process does not stop the whole bill from being approved.
Need expert help with a three-way match? Contact Meridian Business for a free consultation. We will help set the right match process for your AP flow.
When a Two-Way Match is Acceptable
Some clients ask if they can skip the item receipt. That is called a two-way match. It only compares the purchase order to the vendor bill.
This works in some cases:
- International shipments where receipts are harder to track
- Trusted vendors with a clean billing history
- Non-inventory items that do not need physical receipt
In these cases, we help you set rules. For example:
- Domestic shipments use a three-way match
- International shipments use a two-way match
Benefits You Can Expect From Three-Way Matching
When done right, a three-way match offers clear benefits:
- Saves time: No more manual checking across three different documents
- Reduces risk: Catches errors before payments go out
- Improves control: Keeps your finance and purchasing teams in sync
- Speeds up approvals: Helps your team focus on exceptions, not every line item
Key Takeaway: A strong three-way match process gives you better control and saves hours of manual review, especially with large vendor bills.
Why NetSuite Is a Strong Platform for Three-Way Match
NetSuite gives you the tools to make this process work the right way:
- Match across POs, receipts, and bills
- Customize approvals by vendor or item
- Set clear rules for two-way versus three-way
- Handle partial shipments without delays
When your data flows through NetSuite, your team does not have to guess. The system checks the match and highlights problems before they become payment issues.
Final Thoughts and How to Get Started
The three-way match process helps your business stay on top of vendor billing. It adds protection, improves speed, and makes sure you only pay for what was ordered and received.
If you want to tighten your AP process and cut down review time, contact Meridian Business for a free consultation. We will help you build a match system that fits your team, your vendors, and your NetSuite setup.
Contact Meridian Business today to schedule your free quote.
