Where Traditional Matching Breaks Down
Format Fragility
Legacy matching depends on rigid data structures.
If invoice or PO data doesn’t align perfectly, the system can’t reconcile it forcing manual review.
Human-Heavy Exceptions
Even minor discrepancies (e.g., quantity 100 vs. 99) trigger human intervention.
These small exceptions consume hours each week.
Disconnected Systems
POs live in procurement, GRNs in inventory, and invoices in finance.
Without unified visibility, reconciliation requires data exports and spreadsheets.
How AI Transforms 3-Way Matching
Intelligent Document Understanding
AI reads invoices, receipts, and POs in any format - PDFs, scans, or emails, extracting key data fields with near-human accuracy.
It recognizes context, even if vendor naming conventions or layouts differ.
Result: Data becomes usable without manual rekeying or formatting.
Contextual Matching
Instead of relying on exact field matches, AI uses pattern recognition to find logical connections identifying probable matches based on supplier, amount, item, and timing.
It can detect that “Widget-Blue-XL” and “Blue Widget (XL)” are the same item.
Result: 3-way matching accuracy jumps from ~70% to 95%+.
Predictive Exception Handling
AI doesn’t just flag mismatches, it explains why. By analyzing historical data, it predicts which vendors, items, or plants are likely to cause future exceptions.
Result: Finance teams address root causes, not just symptoms.
Continuous Learning
The more transactions processed, the smarter the system becomes.Over time, it learns how each entity, vendor, and region handles invoices, improving accuracy automatically.
Real Impact: Before vs After AI
That's 70% faster processing and 3x better accuracy.
Three-way matching isn’t optional, it’s your best defense against fraud and spend leakage. But without AI, it’s slow and expensive. With AI, it becomes a fast, scalable control that frees up working capital, reduces risk, and positions AP as a strategic finance function.
Ready to Scale 3‑Way Matching Without the Bottlenecks?
Book a demo to see how Finofo automates AI-powered 3‑way matching.
