In the Procure to pay cycle, we all know it start from requisition to payment, thus it is equally important to understand the relation between PO and Invoice, which of course is subject to Matching based on tolerances level set.

**How many ways for matching**They are mainly 3 ways:

- 2-ways
- 3-ways
- 4-ways

**How to explain**

**2-way matching**

This verifies verifies that Purchase order and invoice information match within your tolerances as follows:

Invoice price <= Purchase order price

Quantity billed <= Quantity Ordered

**3-way matching**

This verifies that the receipt and invoice information match with the quantity tolerances defined:

Invoice price <= Purchase order price

Quantity billed <= Quantity Ordered

Quantity billed <= Quantity received

**4-way matching**

This verifies that acceptance documents and invoice information match within the quantity tolerances defined:

Invoice price <= Purchase order price

Quantity billed <= Quantity Ordered

Quantity billed <= Quantity received

Quantity billed <= Quantity accepted

**How to relate between PO and invoice tables:**

Here are the entity relationship diagram, explaining 2 way and 3 way matching condition.

**In summary**

2 Comments To "PO Matching: 2 ways, 3 ways or 4 ways"

#1 CommentBySiddharthOn April 26, 2008 @ 2:49 amI am using 2 way matching on a Service PO & attaching a tax rate on it. I cant change the tax amount in Payables after I hit calculate tax key. Is this some problem relating to this Matching Process

#2 CommentByJosephinas ShenOn January 29, 2009 @ 6:33 pmI understand that 3/4 ways receipts, Oracle will automatically book an accrual transactions if we haven’t received the invoices.

How about the 2 ways match? How does system book the accrual transactions if it is a 2 ways match and we have recived the service but not the invoice?