Three-way Matching Agent

Overview

Ingests supplier invoices from EHF, email inbox, EDI, or portal, extracts PO numbers and line items regardless of how the supplier has written or structured them, matches quantities against the purchase order and goods receipt, even when the supplier has split or joined lines differently, codes to the correct GL account, and records the matched invoice with the correct data in the ERP.

KPI it moves

• +60–80 pts

  Invoice touchless rate

  Most PO-backed invoices get extracted, matched, coded, and queued for payment without anyone touching them.

What it does

• Captures PO references and line items from any invoice format

  Reads invoices arriving via EHF, email inbox, EDI, or portal and extracts PO numbers and item references regardless of how the supplier has written them, embedded in free text, truncated, hyphenated, split across fields, or referenced by description only. Handles non-standard supplier layouts where PO data isn't in a predictable location.

• Matches quantities against PO and goods receipt, even when lines are split or joined

  Checks that invoiced quantities match what was ordered and received, even when the supplier has structured the invoice differently from the PO, splitting one PO line across multiple invoice lines, or consolidating several PO lines into one. Verifies that the total quantities add up against the PO and goods receipt regardless of how lines are grouped.

• Codes invoices to the correct GL account

  Applies the organization's accounting rules to assign each invoice line to the correct GL account and cost center. Uses PO categorization, commodity codes, and historical coding patterns to determine the right account, flagging lines where the coding is ambiguous for review.

• Records the matched invoice correctly in the ERP

  Posts the matched and coded invoice to the ERP with the correct GL account, cost center, quantities, prices, and payment terms. The ERP record is the end product, every field is written correctly so the invoice enters the next payment run with no manual corrections needed.

How it works

1. Trigger

   Supplier invoice arrives

   A new invoice arrives via EHF, the AP email inbox, EDI feed, or supplier portal, in EHF/XML, PDF, EDI 810, or scanned image format.

2. Step 1

   Extract PO references and line items from the invoice

   Reads the invoice and extracts PO numbers, item references, quantities, prices, and units of measure. Handles PO numbers written in any format, truncated, hyphenated, split across fields, embedded in descriptions, and maps each invoice line to the referenced PO lines even when the structure doesn't match one-to-one.

3. Step 2

   Match quantities against PO and goods receipt

   Checks that invoiced quantities match what was ordered on the PO and what was received on the goods receipt. Resolves cases where the supplier has split or joined lines differently, the total quantities must add up against the PO regardless of line structure. Diagnoses mismatches with the specific cause and financial delta.

4. Step 3

   Code to GL account and cost center

   Applies accounting rules to assign each invoice line to the correct GL account and cost center based on PO categorization, commodity codes, and historical patterns. Flags ambiguous codings for review.

5. Step 4

   Record the invoice correctly in the ERP

   Posts the matched and coded invoice to the ERP with the correct GL account, cost center, quantities, prices, and payment terms, ready for the next payment run. Exceptions are routed to the responsible owner with the specific mismatch cause.

6. Resolution

   Invoice correctly recorded in the ERP or exception routed

   Matched invoices are recorded in the ERP with the correct data across all fields and enter the next payment run. Exceptions are routed to the responsible owner with the specific mismatch cause and financial impact.

Why it matters

• Invoices matched even when PO references are messy or non-standard

  so that invoices aren't rejected or parked just because the supplier wrote the PO number differently or used a non-standard layout.

• Split and joined lines don't create false exceptions

  so that an invoice where the supplier grouped or divided lines differently from the PO still matches, because the quantities are checked against the PO, not the line structure.

• Correct GL coding and ERP data on the first pass

  so that invoices post to the right accounts with the right data and month-end close isn't held up by miscoded or incorrectly recorded payables.

What it needs

Read/write access to the ERP

Connects to the ERP (e.g. SAP S/4HANA, Microsoft Dynamics 365, IFS Cloud, Infor LN/M3) to read purchase orders, goods receipts, and GL account structures, and to record matched invoices with correct coding, quantities, and payment terms.

Inbound invoice feed

Receives supplier invoices via EHF (electronic invoicing), the AP email inbox, EDI gateway, or supplier portal. Supports EHF/XML, PDF, EDI 810, and scanned image formats.