You can easily validate three-way matching in Peakflo by following the steps in this article:
Table of Content:
1. How to match receipt notes to purchase orders in Peakflo
2. How to match purchase orders to bills in Peakflo
How to match receipt notes to purchase orders in Peakflo:
Before getting started, it is essential to know that the matching is done base on two factors:
- Balance quantity- Quantity yet to be received
- Balance amount- Amount yet to be billed
Now let's take a look at the steps:
1. Go to the “Receipt note” section under “payables”.
At a glance, you can check the receipt note status and whether or not it is matched to a PO from the "PO Number" column.
2. Open the Receipt note that you want to match with a PO and click on "Match PO".
3. Then choose the PO(s) that matches the receipt note.
The validations for receipt note (RN) to purchase order (PO) matching:
Vendor ID Match: The vendor ID on the RN should match the vendor ID on the PO.
Matching Line Items: Every item received in the RN will match a line item in the PO or will be marked as a non-PO item.
Quantity Check: For each item received, the quantity should be less than or equal to the remaining quantity in the corresponding PO line item and greater than zero. If the quantity in RN is greater than PO then the system will show it as a Warning.
- The unit cost in the RN should not exceed the unit cost in the PO, if it does it will be shown as Error.
- The unit cost in the PO should not exceed the unit cost in the RN, if it does it will be shown as Warning.
Delivery Date Check: The delivery date in the RN should be on or before the delivery date in the PO, if it does not it will be shown as Warning.
4. Once the PO is matched, Peakflo will validate the line items and flag any mismatches.
5. When clicking on “save”, if there’s a mismatch, it will appear as a warning, and your AP team can leave comments and tag the stakeholders to resolve the warnings. 
Both Warning and Error validations will allow users to save the PO/RN/Bill. But error validations will not allow users to proceed for submission for approval.
6. Once the PO is matched to the receipt note, in the receipt note table view, you can see the matched PO in the "PO Number" column. 
How to match purchase orders to bills in Peakflo:
1. To match the PO to the bill, go to the “Bills and Reimbursements” tab under “Payables”.
From the “PO Number” column, you can see if the purchase order number has been matched with the PO already. If this column is empty, then there are no POs matched.
2. Hover over the bill that you want to match with a PO, then click on the pencil icon on the screen.
3. Once the bill is opened, click the “Match PO” button.
4. The list of POs will be shown and you can choose the POs that match the bill and click on “Proceed”.
When you select multiple POs for a bill, the total count of POs will be shown in the heading. Clicking on the Matched POs field opens a search bar where you can find POs by their number.
Use the "Remove All" option to clear all mapped POs at once, returning to the unmapped state.
5. If you want to manually match the POs line items and bill line items, then click on the "Manually Match" option.
If you want Peakflo to automatically match the line item details, the click on "Yes, Override" option.
6. Peakflo will automatically match the PO line items to the bill line items and flag the mismatches.
- When a bill is linked to multiple POs, the bill’s custom field will auto-fill with the value from the first PO if the custom fields are the same.
- If the WHT, Discounts, and Tax details are present in the POs, it will automatically get synced for the Bill and the Bill Line Items.
7. If there’s a mismatch, it will appear as a warning, and your AP team can leave comments and tag the stakeholders to resolve the warnings.
The validation of purchase orders (PO) and bills:
Quantity Status
- If the billed quantity is less than the balance quantity in the PO, the quantity status is "Partial billing."
- If the billed quantity is more than the balance quantity in the PO, the quantity status is "Over billing."
- If the billed quantity matches the balance quantity in the PO, the quantity status is "Matched."
- If the line item is not mapped, the quantity status is "Not Matched."
- If the billed unit price is less than the PO unit price, the price status is "Under billing."
- If the billed unit price is more than the PO unit price, the price status is "Over billing."
- If the line item is not mapped, the price status is "Not Matched."
Terms of Payment
- If the Terms of Payment for Bill is greater than Terms of Payment for PO then the system will show a warning sign.
8. Once the PO is matched to the bill, in the Bills pop-up view, you can see the matched POs in the "Matched Purchase Order" field. 
The matched details will also be visible on the PO view tab.
When a bill is saved or updated, Peakflo recalculates the purchase order and receipt note balances to account for the latest bill amounts. This ensures that the remaining balances of POs and RNs are always up-to-date.
Now the invoice, purchase order, and receipt note are all matched in Peakflo and the three-way matching is complete!
If you opt for "Pay on Delivery" as the payment type, creating a receipt note and generating the bill from the receipt note is mandatory for the successful processing of the bill.