What is PO matching software?

PO matching software is designed to streamline and automate the process of matching supplier invoices to corresponding documents like purchase orders, receipts, etc. It’s part of accounts payable automation. Invoice automation software helps to ensure that payments are made only for goods or services that have been received and accurately billed. Essential functions of this software include: Automated matching: includes three-way matching against POs and goods receipts based on pre-set rules and algorithms. Exception handling: uses artificial intelligence to identify discrepancies between invoices, POs, and receipts; then flags for extra review. It also recognises non-PO invoices. Data extraction: is what some invoice management software systems use, including optical character recognition (OCR) to extract relevant invoice data by line item. Approval workflows: to route electronic invoices through predefined workflows, ensuring approval before payment. Top integrations: with other accounting systems and enterprise resource planning (ERP) platforms. Reporting and analytics: to provide insights into exception rates, validations, AP team performance, and more. Depending on your business needs, many invoice matching software platforms can be customised to optimise the payable process.

What are the benefits of using invoice matching software in accounts payable?

Case studies from all over the globe have proven the many benefits of invoice matching software in accounts payable. Here are just a few: Boosted Efficiency Automating time-consuming, repetitive tasks naturally speeds up the invoice processing cycle. Eliminating manual processes allows finance teams to focus on strategy and growth. Enhanced Accuracy The right technology significantly reduces inaccuracies in the invoice matching process. This is particularly useful when AP is run using manual data entry by the payable team. Cost Savings Invoice matching software will minimise the risk of overpayments and duplicate payments, leading to potential cost savings. Faster payments also mean companies can take advantage of early payment discounts. Improved Compliance Invoice process automation ensures all invoices comply with company policies and regulatory requirements, reducing fraud and non-compliance risk. Additional Benefits Real-time visibility into invoice status and payments Improved vendor relationships with better contract terms Supports scaling operations by handling increased volumes

What features should I look for in invoice-matching software?

When evaluating invoice matching software, it’s essential to consider features that will best meet your organisational needs and help to optimise your accounts payable process. Here are some primary functions to consider: Automated Three-Way Matching Ensure your chosen software automatically matches invoices with purchase orders and goods receipts. This is the primary feature for reducing manual workload and errors. Exception Handling and Resolution The software should flag discrepancies between invoices, purchase orders, and receipts, and notify relevant users automatically. The platform should include a streamlined workflow for resolving mismatches, and the ability to assign tasks, track progress, and approve resolutions. Data Extraction The system should employ OCR to extract data from scanned or digital invoices. Integration Capabilities Invoice-matching software should provide seamless integration with your existing ERP and accounting systems, which is essential for data flow and reporting. Real-Time Reporting and Analytics Features should also include customisable dashboards to provide an overview of invoice processing status, exceptions, and critical metrics.

What is the difference between two-way and three-way PO matching?

Two-way and three-way PO matching are standard methods used in invoice processing to verify that payments are made correctly and only for goods or services ordered and received. Here’s a breakdown of the differences between the two: Two-Way PO Matching Touchless 2-way matching involves comparing the purchase order to the vendor invoice. The primary purpose of two-way matching is to ensure that the invoice details match the purchase order information. Two-way PO matching is often used when purchasing services (e.g., consulting) without a physical receipt of goods. It’s also suitable for straightforward transactions where the risk of discrepancies is low or physical receipt verification is unnecessary. Three-Way PO Matching Three-way PO matching involves comparing three supporting documents: the purchase order, invoice, and goods receipt (receiving report). The primary purpose of 3-way matching is to ensure that the invoice matches the corresponding purchase order and that the goods/services billed were received in terms of quality and condition. A 3-way PO is commonly used for purchases involving physical goods where verification of receipt is critical. It’s also used in scenarios where the risk of discrepancies is higher, such as with expensive, high-volume, or complex purchases.

How do tolerance ranges work in PO matching?

The tolerance range in PO matching defines the acceptable level of discrepancies between documents, such as the purchase order, invoice, and goods receipt. A tolerance range provides flexibility to accommodate minor variances in quantity, price, or value without requiring manual intervention for every slight difference. There can be different types of tolerance ranges as well, including: Quantity tolerance Price tolerance Value tolerance Shipping tolerance How does it work? When an invoice is received, the system automatically compares it against the corresponding PO and goods receipt. This matching process includes checking whether any discrepancies fall within the predefined tolerance ranges. If the discrepancies (in quantity, price, value, etc.) are within the set tolerance range, then the invoice is automatically approved, and payment processing continues without any manual intervention. If the discrepancies exceed the defined tolerance range, the invoice is flagged for further review. This flagging triggers a workflow in which someone manually investigates the discrepancy, contacts the supplier, or decides whether to approve or reject it.

Seamless PO Matching

Seamlessly align purchase orders, invoices, and receipts to take the guesswork out of approvals. With Tipalti, you’ll eliminate manual headaches, speed up payment processing, and keep your purchasing precise and policy-compliant.

PO Matching Features

Eliminate Overspending and Strengthen Financial Controls

Shape PO policies around your needs, slash manual tasks with automated matching, and set custom tolerance ranges to keep spending in check—empowering your business to stay agile, efficient, and ready to grow.

Configure Personalised PO Policies

With Tipalti, purchase order processes work for you and save time. Enjoy greater compliance with your company’s purchasing policies. All invoices go through Tipalti AI Smart Scan, auto-coding, and approval workflows before payment processing.

Set up rules to determine if an invoice is PO-backed and if it should go through the matching process
Base rules on the supplier or bill amount
If an invoice has a purchase order, the PO bill coding data pre-populates the invoice

Cut the Manual Work With Tipalti’s Matching Engine

Built for two-way and three-way matching, our solution provides the flexibility to eliminate overspending. Even if an invoice is auto-matched, you can still require additional approvals before processing payment.

Matches headers and line levels
Aligns currencies, units of measure, landed cost, and more
Supports multiple POs against one invoice and vice versa

Set Tolerance Ranges That Work for Your Business

Want more flexibility? Rather than manually reviewing all mismatches between invoices, purchase orders, and receiving reports, you can create tolerance thresholds based on amounts or percentages and the bill or line level. That way, invoices are still considered “matched” if they’re within the threshold.

Improve first-time match rates to cut costs
Gain insights into exceptions with a colour-coded and intuitive interface
Reduce the number of exceptions requiring further investigation

Easily Manage and Reconcile Exceptions

Exception reconciliation has never been easier or more intuitive. Tipalti shortens cycle time from invoice receipt to payment and maximising discount opportunities.

Clear highlights of exceptions, where they occur, and steps to resolve them
Configure exception approval rules, so the buyer can approve or reject directly via email without logging in to Tipalti
If the exception exceeds the threshold, AP can dispute the bill or the PO can be updated in the ERP system

Elevate Inventory Management

Manufacturers can streamline PO matching with advanced inventory management for accurate tracking and payments. Implement a scalable PO policy across suppliers to eliminate overspending and strengthen financial control.

Optimise prepayment workflow with seamless ERP integration.*
Support invoices for items with inventory details, such as serial numbers and locations.*
Streamline three-way PO-matching for dropshipping invoices when selling products without maintaining inventory.*

* Available for NetSuite users

Frictionless Approval Cycle

Exception approvals on purchase orders are easy. Any exceptions that exceed established thresholds can be sent for immediate approval through email and approved or contested with a single click.

Integrations

Pre-Built ERP Connections to Extend Automated Workflows

Easily extend and simplify your workflows with pre-built integrations and powerful APIs for your ERPs, accounting systems, performance marketing platforms, HRIS, SSO, Slack, credit cards, and more.

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Customer Stories

Don’t just take our word for it,

see what our customers are saying

Plentific

Plentific automated procurement and AP, cut workload by 90%, saved 108 days on payments, and sped up monthly close by 23 days.

Product

AP Automation

Procurement

Region

United Kingdom, Global

Industry

Software and technology

Size

100 – 1000

Outset Global

Outset Global automated AP workflows, cut AP close time by 50%, and integrated seamlessly with QuickBooks.

Product

Region

Industry

Size

Sensei

Sensei saved 40 hours/month on AP tasks, avoided hiring extra finance staff, and freed the team to grow and build new skills.

Product

AP Automation

Region

United States, Global

Industry

Healthcare

Size

100 – 1000

Cybereason

Cybereason customized purchase requisitions to fit its structure and built a seamless integration with its ERP, NetSuite.

Product

AP Automation

Procurement

Region

United States, Global

Industry

Software and technology

Size

1000+

Centerfield

Centerfield Media cut 20 weeks of AP work yearly and saved 12 days on monthly close using Tipalti Accounts Payable.

Product

Region

Industry

Size

Vivino

Vivino implemented Tipalti Accounts Payable to automate invoice management and other accounts payable processes, including vendor onboarding and multi

Product

AP Automation

Region

Europe, Germany, Global

Industry

Marketplaces

Size

100 – 1000

Create Music Group

Manual international payouts and multi-entity accounts payable processes were time-consuming and complex, delaying artist payments

Product

AP Automation

Mass Payments

Region

United States, Global

Industry

Music royalties

Size

100 – 1000

Next Insurance

NEXT Insurance automated 1,000+ monthly invoices and saved 2+ hours per week with a streamlined approval workflow.

Product

Region

Industry

Size

Endera

With Tipalti, Endera streamlined invoices, automated vendor onboarding, and improved international payments by eliminating manual wire transfers.

Product

AP Automation

Region

United States

Industry

Software and technology

Size

Sub 100

Explore All Stories

How It Works

Up and Running in Weeks, Not Months

Collaborative customer support with customised onboarding to get you operational quickly

Step 1

Plan

Kickstart your success with a comprehensive setup call that reviews your manual AP workflow, outlines the onboarding plan, validates technical configurations, and prepares for training.

Step 2

Configure

Tipalti’s implementation experts set up your hosted portal, create sample payment files, configure payment options and email integrations, and establish ERP integrations using our pre-built solutions.

Step 3

Deploy

In-depth training for AP staff on the Tipalti Hub and the end-to-end AP automation functionalities, ensuring thorough knowledge transfer to turbocharge your successful launch.

Step 4

Adopt

Support user adoption and change management during launch while guiding suppliers through onboarding. Once set, you’ll be ready to execute your first payment run and officially launch Tipalti.

Step 5

Optimise

Continued technical support by phone and email. Tipalti customer success team learns your goals and offers solutions to reach them.

Platform Features

Work smarter, not harder

With AI and machine learning capabilities, an intuitive UX, and quick and easy global payments, you can drive unprecedented efficiency.

AI

Smarter processes. Instant insights. More productivity. Less manual work. Tipalti AI actually gets things done.

Global

Manage all entities’ payables operations from a single system. Enable each entity to operate with its own unique workflows and branding.

Tipalti Detect®

Proactively prevent fraud by identifying unusual patterns. Block suspicious payees from receiving payments, prevent them from creating new accounts, and get notified of abnormal activities.

Controls and Compliance

Stay up-to-date and protected automatically, with multi-jurisdictional tax compliance, built-in payment protections, and enterprise-grade controls and security.