What Records Does Epicor Compare?
Three-way matching relies on connected purchasing and accounts payable records. Each record provides a different type of evidence, and the comparison helps determine whether an invoice can move forward for approval and payment.
- Purchase order: Contains the supplier, item or service description, authorized quantity, agreed unit price, payment terms, and other purchasing conditions.
- Receipt record: Documents goods received or services recorded against the purchase order, including quantities, dates, and relevant receipt references.
- Supplier invoice: Records the supplier's billed quantities, unit prices, taxes, freight, and total amount due, as applicable.
The matching process checks relevant fields across the three records. A purchase order for 100 units does not, by itself, establish that all 100 units arrived. The receipt record provides evidence of delivery, while the invoice establishes the amount the supplier is requesting. The comparison brings these facts together for an informed payment decision.
How Does the Three-Way Match Process Work in Epicor?
The workflow typically begins when a purchase order is created and approved. Once goods arrive or services are recorded, the receiving team enters the receipt information against the relevant order. Accounts payable then records or imports the supplier invoice and links it to the purchase order and receipt.
Epicor compares available transaction details according to the organization's configured matching rules. When quantities and prices fall within permitted tolerances, the invoice can proceed through the configured approval and posting workflow. When a mismatch appears, the invoice can be routed for review so the responsible team can verify the underlying records before payment.
For example, a purchase order authorizes 50 units at $40 each, giving an expected goods value of $2,000. The receipt confirms delivery of all 50 units, and the supplier invoice also bills 50 units at $40 each. Assuming no additional charges or taxes, all three records agree at $2,000. If the invoice instead bills 55 units, the five-unit difference requires investigation before the invoice is treated as fully matched.
How Are Matching Exceptions Resolved?
A matching exception identifies a difference that needs a business explanation. The goal is to determine whether the invoice, purchase order, receipt, or supporting documentation needs correction, rather than simply changing a value to force a match.
- Quantity mismatch: Compare the billed quantity with the recorded receipt and check for partial deliveries or unrecorded receipts.
- Price mismatch: Review the purchase order, approved amendments, contract terms, and supplier invoice pricing.
- Missing receipt: Confirm delivery or service completion and ensure the authorized receiving record is entered.
- Additional charges: Validate freight, tax, and other charges against the purchasing terms and configured accounting rules.
Document the reason for each adjustment and retain the relevant approvals. This creates a traceable explanation for the final invoice decision and supports consistent accounts payable controls.
How Epicor Integration and Automation Support Matching
Hyperbots Platform supports company-specific workflow, role, general ledger, and ERP integration configurations through a no-code framework. Its Process Specific Capabilities address finance workflows with process-focused AI, while Ready to Deploy Capabilities provide pre-trained agents and ERP connectors for supported tasks. Self Learning Capabilities use human feedback to refine supported workflow decisions, and Human in the Loop enables review and approval of exceptions that need finance-team judgment.
When connecting finance processes to Epicor, an ERP Integration Layer: How It Powers Finance Automation can help explain how live transaction data flows between systems. ERP Modernization vs Finance Automation: Key Differences distinguishes upgrading ERP technology from improving the execution of finance work. Understanding How Many Levels Does a Typical ERP System Include? also provides broader context for how application, data, and automation layers can support purchasing and accounting workflows.
For procurement teams, Three Way Match describes the core comparison, while Three Way Match Procurement places that control in the purchasing and receiving lifecycle. An Exact Match is a comparison in which relevant values agree precisely; configured tolerances may also permit defined differences, depending on the organization's rules.
Best Practices for Reliable Three-Way Matching
Start with accurate purchase orders, timely receipt entries, and consistent supplier invoice references. Configure price and quantity tolerances according to purchasing policy, and assign exception ownership to the team best positioned to verify the facts. Review recurring mismatches by supplier, item, department, and transaction type to identify patterns such as outdated prices or delayed receipt recording.
Maintain separation between invoice preparation, exception resolution, and payment authorization where required by company policy. Before extending matching through ERP integrations, test representative scenarios such as partial receipts, multiple deliveries, unit-of-measure differences, credit notes, and invoices with freight charges. Validate both the workflow outcome and the accounting records created.
Summary
Epicor three-way matching compares purchase orders, receipt records, and supplier invoices to verify that purchases were authorized, received, and billed according to agreed terms. Correct records and well-defined tolerances help invoices move through approval while directing mismatches for investigation. With consistent purchasing data, clear exception ownership, and tested ERP workflows, finance teams can strengthen payment controls, improve accounts payable visibility, and support accurate financial reporting.