Invoice matching is the process of comparing supplier invoices to purchase orders and goods receipts to verify accuracy before payment. Also called three-way matching.
Invoice matching is an internal control that prevents overpayment, duplicate payment and payment for goods not received. In its simplest form (two-way matching), you compare the supplier's invoice to your purchase order to verify quantities, prices and terms match. In three-way matching, you also compare against the goods receipt or delivery note to confirm you actually received what was ordered and billed. Discrepancies at any stage require investigation before payment is approved. Invoice matching catches common errors like: incorrect pricing, wrong quantities, duplicate invoices, goods not received and unauthorised purchases. For businesses processing many supplier invoices, automated matching can save significant time while maintaining control. In Xero, purchase orders can be matched to bills during the bill entry process. SortBooks enhances this by automatically comparing incoming supplier invoices against existing purchase orders and flagging any discrepancies in price, quantity or terms.
SortBooks automates the bookkeeping processes related to invoice matching by connecting to your Xero account and using AI to categorise transactions, reconcile bank feeds and generate accurate reports. Instead of manually managing invoice matching, SortBooks handles it automatically with 97%+ accuracy - saving you hours every week and ensuring your books are always up to date and compliant.
A purchase order (PO) is a formal document sent to a supplier authorising a purchase. It specifies the items, quantities, agreed prices and delivery terms.
Accounts payable (AP) represents the money your business owes to suppliers and vendors for goods or services received but not yet paid for. It is a current liability on your balance sheet.
Internal controls are processes and procedures designed to safeguard business assets, ensure accurate financial reporting and prevent fraud or errors.
A bill (also called a supplier invoice or purchase invoice) is a document received from a supplier requesting payment for goods or services they have provided to your business.
Reconciliation is the process of comparing two sets of records to ensure they agree. Common types include bank reconciliation, accounts receivable reconciliation and intercompany reconciliation.
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