The invoice matches the purchase order, but goods are missing: what should ERP check?
Matching prices do not prove complete delivery
An invoice may use the purchase order's prices while billing more units than were actually received. If accounting sees only those two documents, the missing quantity may be overlooked before approval. Three-way matching adds receipt information to the process. This article concerns ERP controls suited to the organization, not contractual payment rights or the tax treatment of individual cases.
Separate ordered, received and billed quantities
A purchase order describes what was agreed for ordering; a receipt records what has been received; an invoice states what the vendor bills. Microsoft Dynamics 365 Finance describes three-way matching as checking prices against the purchase order within configured tolerances and matching invoice quantities to the corresponding receipts. Actual settings depend on the product and policy. Similar menu names do not mean every application behaves identically.
Try an order for ten with only six received
Suppose ten items are ordered at one price, but only six are received and recorded before an invoice for ten arrives. Even if the unit price matches, the four-item difference needs investigation. Are goods still in transit, received but unrecorded, or linked to the wrong document? Do not increase the receipt to ten simply to pass a screen check. Prepayment or special terms should follow a separately defined, authorized process.
Assign discrepancy resolution and approval
Specify who verifies actual receipt, who checks agreed prices and who approves exceptions, including required reasons and documents. Tolerances must be established by the organization rather than copied from a manual's example. Alerts should lead to a verifiable cause instead of becoming routine overrides. A passed match also does not replace product quality checks or approval authority.
Test partial deliveries and document corrections
Use mock data to test multiple deliveries against one order, invoices linked to different receipts and receipts that require factual correction. Check whether staff can see matched quantities and unresolved items clearly. Record expected results before testing and follow the downstream outcome after approval. Do not test only perfectly matching numbers or alter real historical documents to make tests appear successful.
Prepare process examples before choosing settings
When discussing accounting or ERP with Chawinnix, bring examples with personal information removed, the organization's receiving process and real exception categories. Ask the proposal to show the path from data intake through discrepancy review and approval, with an owner at each step. Three-way matching organizes checks but does not guarantee detection of every error or certify a document's tax validity.
