Purchase orders and three-way match
Order, receive, then bill — and the system refuses to let the three disagree quietly.
Purchases → Purchase orders.
A PO commits you to buy but posts nothing. The ledger moves when goods arrive and when the bill arrives.
The three-way match compares:
- The purchase order — what you agreed to buy and at what price.
- The receipt — what actually turned up.
- The bill — what the vendor is charging.
When all three agree the bill posts without ceremony. When they do not, the bill is held with the variance named: a quantity variance (billed for more than was received) or a price variance (charged more than the agreed price). Tolerances are yours to set — a few cents of rounding should not stop a payment.
Partial receipts are normal: receive what came, and the PO stays open for the rest.
Related: Purchase requisitions for the approval that happens before a PO exists, and Bill approval workflows for approving the bill itself.