Matching FAQ

Common questions about matching invoices to purchase orders and receipts in Mod AI.

What is invoice matching?

Invoice matching is the process of linking an invoice to its corresponding purchase order (PO) -- and optionally to a goods receipt -- to verify that the purchase was authorized and the goods or services were received. Matching helps prevent paying for items that were never ordered or never delivered.

What is the difference between two-way and three-way matching?

• Two-way matching compares the invoice to the purchase order. It verifies that what was invoiced matches what was ordered (quantities, prices, line items).
• Three-way matching adds a receipt to the comparison. It verifies that what was invoiced matches what was ordered and what was actually received.

Three-way matching provides stronger controls but requires receipt data. You can enable receipt matching in your entity feature toggles.

What happens when matching fails?

When Mod AI cannot find a matching purchase order for an invoice, a Missing Purchase Order notice is created on the invoice. You can then:

• Manually match -- Search for and select the correct PO from the matching panel.
• Dismiss the notice -- If no PO is required for this invoice (e.g., a utility bill or subscription), dismiss the notice and continue processing.

See Missing Purchase Order Notice for more details.

How does Mod AI find the right PO?

The AI uses multiple signals to calculate a match confidence score, including:

• Vendor name on the invoice and PO
• Invoice amounts compared to PO amounts
• Line item descriptions and quantities
• PO numbers referenced on the invoice
• Historical matching patterns

The system ranks potential matches by confidence and suggests the best one. If the confidence is high enough, the match is applied automatically.

Can I manually match an invoice to a PO?

Yes. On the invoice detail page, open the matching panel. You can search for purchase orders by PO number, vendor, or amount. Select the correct PO and confirm the match. Manual matches are treated the same as automatic matches for approval and sync purposes.

What are match scores?

A match score is a confidence percentage that indicates how likely a suggested PO match is correct. Higher scores mean better matches. For example:

• 90-100% -- Very high confidence. The invoice and PO align closely on vendor, amounts, and line items.
• 70-89% -- Good confidence. Most details match, but some fields may differ slightly.
• Below 70% -- Lower confidence. Review the match carefully before accepting.

The match score helps you prioritize which suggested matches to review versus which ones you can accept with confidence.

Learn More

• Matching Invoices to POs and Receipts -- Full guide to automatic and manual matching in Mod AI.