Case Study: Automating 2-Way & 3-Way Matching for Accurate and                          Efficient Invoice Validation

Introduction

The client was experiencing significant inefficiencies in their invoice validation process due to manual verification, fragmented data, and inconsistent documentation across procurement and finance. These challenges often resulted in delayed approvals, payment discrepancies, and compliance issues.

To address this, Catnip Infotech developed an intelligent automation framework for 2-Way and 3-Way Matching, enabling accurate verification, faster turnaround times, and complete transparency across the procure-to-pay cycle. The solution ensured tighter financial controls while reducing manual workload and operational risks.

2-Way Matching Automation

Catnip Infotech automated the validation of invoices against purchase orders (PO) by establishing real-time, rule-based checks. The system verifies key parameters including item codes, quantities, unit prices, tax structures, and vendor details. Any deviation from the PO triggers an immediate alert, allowing teams to take corrective action before approval.
Invoices that meet all matching criteria are automatically approved and pushed to the ERP, drastically accelerating processing time and improving accuracy.

3-Way Matching Automation

To strengthen financial governance further, Catnip Infotech implemented 3-Way Matching by validating invoices against both the PO and the Goods Receipt Note (GRN). This ensures that organizations pay only for what was ordered and actually received.
The automated system cross-checks delivered quantities, item specifications, and pricing across all three documents. Discrepancies are flagged instantly, enabling procurement and finance teams to resolve issues with minimal delays. This approach substantially reduces errors, prevents overpayments, and enhances compliance.

Process Flow (PDD):

Below is a simplified visual flow of how the automated 2-Way & 3-Way Matching process streamlines invoice verification and ensures accurate, real-time posting to your ERP system.