Accounts Payable (AP) has evolved from a paper-based, error-prone task into a strategic function powered by automation. For CFOs, controllers, and AP teams, automating invoice processing – especially through 2-way and 3-way matching – is critical for ensuring financial accuracy, reducing manual workload, and enhancing compliance.
Why Matching Matters
Invoice matching is a core control mechanism in AP:
- 2-Way Matching: Compares invoice to purchase order (PO) to confirm quantities and pricing
- 3-Way Matching: Adds receipt of goods/services to ensure the order was fulfilled
These steps protect against overpayments, fraud, and errors. Research shows 3-way matching can reduce payment discrepancies by up to 70%.
Manual vs. Automated Matching
Manual matching is slow, costly, and error-prone – often taking 14+ days per invoice and costing $15 or more. Automation reduces cycle time by up to 70% and processing cost by 80%, all while enhancing control.
How Automation Improves Matching & Reconciliation
Modern AP solutions leverage AI to:
- Capture invoice data automatically from emails, PDFs, and scans
- Match invoices to POs and receipts in real time
- Flag discrepancies instantly and route exceptions for review
- Integrate with ERP systems to reconcile records and update payment status
- Provide dashboards and analytics for real-time visibility
Best Practices
To maximize ROI:
- Maintain clean vendor and PO data
- Define clear matching rules and tolerances
- Train AP teams to handle exceptions, not data entry
- Use analytics to monitor and improve performance
The Itemize Advantage
Platforms like Itemize enhance 2- and 3-way matching with:
- High-accuracy AI-based invoice capture
- Automated reconciliation across invoices, POs, and receipts
- Anomaly detection and fraud alerts
- Seamless ERP integration and customizable workflows
Itemize customers report touchless processing for 80%+ of invoices, faster cycle times, and reduced overpayments.
Conclusion
Automated 2- and 3-way matching isn’t just a process improvement – it’s a strategic upgrade. By reducing risk, improving speed, and freeing up staff, AP automation transforms finance operations. For finance leaders, now is the time to turn matching into a competitive advantage.
Want to see these capabilities in action? Schedule a demo with Itemize today and discover how intelligent AP automation can streamline your invoice reconciliation, boost compliance, and elevate your finance operations.
