In this article
Talk to our experts- Two-way match
- A two-way match is an accounts payable check that compares a supplier's invoice with the purchase order before the invoice is paid, with no receiving record in the comparison. The quantity and price billed must agree with the order within set tolerances, or the invoice is held. A three-way match adds the receipt of goods.
Also called: 2-way match, two-way matching
How it works
A two-way match is the accounts payable check that compares a supplier's invoice with the purchase order before payment, with no receipt of goods in the comparison.
Oracle's Fusion Cloud documentation (release 26C) states the rule. At the Two-Way match approval level in Oracle Procurement, purchase order and invoice quantities must match within tolerance before the corresponding invoice can be paid. Oracle Payables invoice tolerances set how far an invoice may go over the order, for example:
- Ordered Percentage: the percentage difference more than the ordered quantity on a purchase order schedule line that you allow suppliers to invoice
- Price Percentage: the percentage difference more than the unit price on a purchase order schedule line that you allow suppliers to invoice
When Oracle's invoice validation process finds a matched invoice outside a tolerance, a hold is placed on the invoice, and you can't pay the invoice until the hold is released.
Microsoft's documentation for Dynamics 365 Finance (last updated May 15, 2025) describes two-way matching as matching the price information on the invoice to the price information on the purchase order. Two-way matching always matches price by the unit price, where the net unit price is the net amount of the line divided by the quantity of the line. It can also match by the price total: (unit price x line quantity) + line charges - line discounts, with a tolerance based on a percentage, an amount, or both. Depending on the override setting, two-way matching can be selected for a specific vendor, item, or item and vendor combination, and for a specific purchase order.
Two-way vs. three-way match
- Two-way match: invoice against purchase order, on quantity ordered and price.
- Three-way match: adds the receipt. In Oracle, purchase order, receipt, and invoice quantities must match within tolerance; Dynamics 365 also matches the invoice quantity to the quantity on the product receipts selected for the invoice.
- Four-way match: Oracle also adds accepted quantities from inspection.
A two-way match confirms the bill agrees with the order. It cannot show whether the goods arrived, which is what the receipt in a three-way match adds.
Example
A purchase order is for 250 hoses at $8.40 each: 250 x $8.40 = $2,100.00. The supplier invoices 250 hoses at $8.65: 250 x $8.65 = $2,162.50.
- Quantity: 250 billed, 250 ordered. Passes.
- Price: $8.65 - $8.40 = $0.25 over, and $0.25 / $8.40 = 2.98% over the order price.
- Result: with a 2% price tolerance, the invoice goes on hold until the supplier sends a corrected invoice or a credit memo for $62.50. With a 5% tolerance, it would pass. Both tolerances are illustrations; each buyer sets its own.
On Shopify
For your own buying, a purchase order in the Shopify admin lists the products, quantities, costs, payment terms, and supplier details for an order, which are the figures a two-way match checks the supplier's invoice against. Payments to suppliers are made outside the Shopify admin. After a purchase order is marked as Ordered, you can create an inventory transfer for it to track shipments and receive inventory, the receipt a three-way match would add.
When you sell, Shopify B2B on the Basic, Grow, Advanced and Plus plans lets B2B customers add purchase order (PO) numbers to an order, so your invoice can quote the buyer's PO.
How Uncap helps
Uncap's guide to selling medical supplies online with contract pricing describes each account seeing its contract price on every item, applied from the same record the ERP invoices against. Its foundational rule: the ERP owns the price, the storefront displays it, and nothing is retyped in between.
Sources
Frequently asked questions
What is an invoice 2-way match?
An invoice 2-way match compares a supplier's invoice with the purchase order before payment. In Oracle Fusion Cloud, purchase order and invoice quantities must match within tolerance before the invoice can be paid, and price tolerances limit how far the invoice may exceed the unit price on the order.
What is the 2-way matching process in accounts payable?
Accounts payable receives the invoice, finds the purchase order it bills against, and compares quantity and price line by line. If both fall within tolerance, the invoice can be approved for payment. If not, it goes on hold: in Oracle's invoice validation, you can't pay the invoice until the hold is released.
How do you match invoices?
Invoices are matched against the purchase order and, at higher levels, the receiving and acceptance records. In Oracle's match approval levels, a two-way match uses the purchase order and invoice, a three-way match adds the receipt, and a four-way match adds accepted quantities from inspection.
What is a 3-way match in the P2P process?
In procure-to-pay, a three-way match checks the invoice against both the purchase order and the record of goods received. It is a two-way match plus a receipt test: at Oracle's Three-Way level, purchase order, receipt, and invoice quantities must match within tolerance before the invoice can be paid.
