Three-way matching: how to handle partial deliveries
You ordered 100 units and received an invoice for 100, but the delivery note lists only 80. A two-document check can show that the invoice agrees with the purchase order and still leave the important question unanswered: what supports the quantity billed? Three-way matching for partial deliveries compares the invoice, order and delivery record together.
Start with all three sources and keep ordered, invoiced and received quantities separate. The useful result is a visible difference with enough context to investigate the remaining delivery, a missing note or the supplier's billing arrangement.
Understand what the three records establish
The purchase order records what was ordered. The invoice records what the supplier is billing. The delivery note records the delivery represented by that document. None of these sources can silently stand in for another.
An invoice matching the order does not establish receipt. A delivery note agreeing with the invoice does not explain a price above the order. Review both quantity and price questions while keeping the source relationships clear.
Oracle's matching-level documentation explains the distinction between two-way and receipt-based checks. The practical value for a small finance team is knowing when a third source is necessary, even if the review starts from uploaded files.
Gather the applicable invoice, PO and delivery note
Check supplier, order reference, item code, unit of measure and document date. Use the applicable PO revision. A newer order may change the quantity or price, and a note from an earlier delivery may not belong to the invoice being reviewed.
Make sure the delivery record is readable and includes the relevant page. A scan that cuts off quantities or item references can create a missing-value exception rather than a business discrepancy.
If the invoice covers several shipments, identify which delivery records belong to it. Do not assume that one note represents every shipment. Verify the workflow's input limits before treating a multi-shipment pack as a supported cumulative allocation process.
A partial-delivery example
The following figures are fictional. PO-72 orders 100 units at €12. Invoice INV-204 bills 100 units at the same price. Delivery note DN-51 records 80 units.
| Check | First source | Second source | Difference |
|---|---|---|---|
| Ordered versus invoiced | PO: 100 units | Invoice: 100 units | 0 units |
| Invoiced versus received | Invoice: 100 units | Delivery note: 80 units | 20 units |
| Ordered versus received | PO: 100 units | Delivery note: 80 units | 20 units |
| Price | PO: €12 per unit | Invoice: €12 per unit | €0 per unit |
The 20 units billed but not supported by this delivery note represent €240 before tax at the stated price. That amount identifies the issue to investigate; it is not automatically an amount to deduct from payment.
Check whether another delivery occurred, whether another note is missing, or whether the agreed billing arrangement permits invoicing ahead of delivery. Keep the answer and supporting evidence with the review.
Separate partial delivery from missing evidence
A partial delivery is a business event. A missing delivery note is an evidence gap. They can produce the same visible quantity difference in a file comparison, but they require different follow-up.
For a partial delivery, ask the receiving team what remains outstanding and when it is expected. For missing evidence, obtain the relevant note and confirm the item quantities. Avoid recording “goods not received” when the actual finding is “receipt not evidenced in the supplied records.”
Use that precise wording in the exception register. It helps the warehouse, buyer and finance reviewer respond to the question they can actually answer.
Check split shipments, units and returns
If 80 units arrived in one shipment and 20 in another, retain both references. Confirm that the second note is a separate receipt and not a duplicate copy of the first. Repeated document uploads should not become repeated received quantities.
Normalize units carefully. A note showing eight cartons may represent 80 pieces, but only if the packing quantity is established. Compare the unit conversion and the item code together.
Returned goods also need their own evidence. A delivery note can show the original receipt without reflecting a later return. Request the return record and any issued credit, then use your review process to determine the effect on the invoice. Do not edit the received quantity merely to make the three figures agree.
Keep quantity and price exceptions separate
A bill may have both an unsupported quantity and a different unit price. Show each source value and avoid rolling everything into a single unexplained total.
For price or order-revision questions, the invoice and purchase-order mismatch guide explains the two-way investigation. For credits or payments that later appear differently on the supplier account, use the separate supplier-reconciliation process.
This separation makes the handoff clearer. The receiving team can confirm delivery, the buyer can explain the agreed price, and finance can retain the resulting approval evidence.
Use a result that shows the source relationships
Arthur & Co's three-way matching workflow accepts the invoice, purchase order and delivery record and returns comparisons with exceptions and source context. Review the extracted quantities and prices before interpreting the difference.
The workflow's pairwise checks help expose which records disagree. They do not establish every cumulative shipment, return or invoice-allocation scenario automatically. Keep complex allocations in the investigation and verify the relevant evidence.
A free run lets you inspect one pack before considering paid repeat use and saved history. Your reviewer decides how to resolve the discrepancy and whether payment can proceed; the workflow does not make that decision or execute payment.
Close the pack with a clear next action
For each unresolved line, record the item, ordered/invoiced/received quantities, value difference, source references and missing evidence. Assign the next step to the receiving team, buyer or supplier as appropriate.
When the missing note or explanation arrives, retain it with the original exception. A completed review should make it clear why the invoice proceeded, changed or remained unresolved, without requiring another person to repeat the entire comparison.