How Epicor Two-Way Matching Works
The process begins when a supplier invoice is received and entered or imported into the accounts payable workflow. The invoice is associated with the relevant purchase order, and the available transaction details are compared against the organization's configured matching rules.
- Purchase order identification: Locate the correct order using its reference, supplier, and relevant transaction details.
- Invoice validation: Compare invoice line descriptions, quantities, unit prices, currency, and applicable charges with the purchase order.
- Variance assessment: Evaluate price or quantity differences against established tolerances and purchasing policies.
- Approval routing: Send invoices that satisfy matching requirements through the configured approval process, while directing exceptions to an authorized reviewer.
- Posting and payment preparation: After the required checks and approvals, process the invoice according to the organization's accounting and payment procedures.
For example, a purchase order may authorize 50 office chairs at $120 each. If the supplier invoices 50 chairs at the same unit price, the invoice and order agree on the principal quantity and price checks. Other required fields, taxes, and charges must still be evaluated under the company's rules.
Worked Example: Identifying an Invoice Variance
Assume a company issues a purchase order for 100 components at $25 per unit. The authorized order value is 100 × $25, or $2,500. The supplier submits an invoice for 100 components at $27 per unit, totaling $2,700.
The difference between the invoice total and the purchase order value is $2,700 − $2,500 = $200. The price variance is $200 ÷ $2,500 × 100 = 8%.
If the company's configured price tolerance is 2%, the 8% variance exceeds that threshold and should follow the prescribed review process. The buyer or AP reviewer can compare the invoice with the supplier agreement, check for an authorized price change, and document the resolution. The invoice should proceed according to the company's approval rules rather than being treated as a match solely because the quantities agree.
This example shows how two-way matching can help finance teams validate billed prices against purchasing commitments before recording or paying the supplier liability.
Two-Way Match Versus Three-Way Match
The main distinction is the evidence used to validate the invoice. Two-way matching compares the purchase order with the supplier invoice. Three-way matching adds the goods receipt, allowing the company to compare what was ordered, what was received, and what was billed.
Two-way matching may suit defined purchases where the purchase order and invoice provide sufficient evidence under company policy. Three-way matching is commonly useful for physical goods when receipt confirmation is an important payment control. Organizations may apply different matching policies by purchase category, supplier arrangement, or transaction type.
The guide Master AP Matching: 2-Way, 3-Way & No-Match Explained helps clarify how these methods differ and when each approach supports invoice control. In procurement workflows, a 3-way match adds receipt verification to the purchase order and invoice comparison, strengthening evidence that billed goods were received.
ERP Configuration and Automation
Within epicor, the applicable invoice entry, purchasing, matching, and approval functions depend on the product version and company setup. Reliable matching requires consistent supplier records, purchase order references, item details, and agreed pricing. Finance and ERP administrators should confirm how tolerances, exceptions, approval roles, and posting permissions are configured for their environment.
Three Way Match Automation applies technology to compare purchase orders, receipt records, and invoices, while two-way automation focuses on invoice-to-order checks. The Hyperbots Platform supports company-specific configuration of ERP integrations, workflows, user roles, and general ledger structures. Its Process Specific Capabilities support defined finance workflows, while Ready to Deploy Capabilities include pre-trained agents and pre-built ERP connectors.
Self Learning Capabilities can use reviewer feedback to refine supported recommendations, while Human in the Loop processes allow designated staff to review variances and authorize decisions. These capabilities can support a controlled workflow when integrated and configured to align with the organization's policies.
Business Benefits and Practical Considerations
Effective two-way matching helps accounts payable teams verify invoice prices and quantities against authorized purchasing records. It also gives buyers and finance reviewers a consistent basis for investigating differences, documenting decisions, and maintaining a clear audit trail.
When designing a two-way matching policy, organizations should define which purchase categories qualify, establish appropriate tolerances, identify who can approve variances, and specify when receipt verification is required. The wider Purchase Order and Invoice Process: Automation Insights connects purchasing, invoice processing, and matching controls across procure-to-pay. Similarly, Three Way Match Procurement explains the role of receipt-based verification in procurement, helping teams determine when the additional evidence is needed.
Reviewing recurring price variances, invoices awaiting approval, and exception resolution times can reveal opportunities to improve purchasing data and supplier coordination. The objective is to make invoice decisions traceable and consistent while ensuring that matching rules reflect the company's actual commercial agreements.
Summary
Epicor Two-Way Match compares supplier invoices with purchase orders to validate billed quantities, prices, and applicable charges before approval and payment. It is useful when purchase order and invoice evidence meets the organization's control requirements. By defining clear matching tolerances, routing exceptions to authorized reviewers, and maintaining accurate ERP records, businesses can strengthen accounts payable controls, support supplier relationships, and improve financial reporting.