Three-way PO match reconciliation (invoice matching)
Use Template
How to automate three-way PO match reconciliation
Ensuring inventory and billing accuracy through the three-way PO match process involves matching purchase orders, receipts, and invoices to identify discrepancies. While this process is often painfully manually because of the messy PDFs involved, teams risk overpaying vendors and creating inventory issues by not ensuring these key documents tie out.
Parabola automates the three-way PO match process by importing data from procurement systems, warehouse receipts, emails, and invoices — alerting your team of any discrepancies across the documents in real-time. Whether data comes in totally clean or needs to be mapped to your internal format, you can use Parabola to standardize SKUs, dates, and currencies across documents before combining data on identifiers like PO number and SKU. Take it a step further and use this data in your vendor scorecard Flows to grade vendors on billing and receiving accuracy.
Video overview
Why Parabola
Parabola has given our team an intuitive yet robust platform that simplifies the day-to-day process of data automation, transformation and storage. Parabola has added to team productivity exponentially.
Three-way PO match reconciliation is the process of comparing purchase orders (POs), receiving notes, and invoices to ensure that what was ordered matches what was received and billed. This process prevents overpayments, ensures accurate accounting, and identifies discrepancies that need resolution.
- Import purchase order, receiving notes, and invoice data using steps like Pull from CSV file, Pull from inbound email, and Pull from PDF.
- One by one, standardize these datasets into a uniform format, ideally one that matches your internal format. Using steps like Edit columns and Extract with AI, include key fields such as PO numbers, item descriptions, quantities, and prices from your imported datasets.
- Once your datasets are standardized, use the Combine tables step to join POs with receipts and invoices based on shared identifiers like PO numbers.
- Add logic with the Add if/else column step to identify mismatches in quantity, price, or item details.
- Filter mismatched records using the Filter rows step for review or resolution.
- Generate a discrepancy report and action on your data, using steps like Visualize, Send to Google Sheets, and Email a file attachment.
- Standardize column headers and data formats early in the flow to ensure clean joins across datasets.
- Instead of uploading all three documents at once, you can also take it step-by-step: Import your PO first, ensure you're able to clean and format the dataset, then move on to your receiving note.
- Since these key documents are so frequently shared over email, consider setting up an auto-forwarding rule to have invoices automatically flow into Parabola.
- To start building your three-way PO match reconciliation Flow, use the Template above and check out Parabola University.
- Learn more about how to set up an auto-forwarding rule in Parabola here.
