What is procure-to-pay software?

Procure-to-pay software is a business tool that enables organizations to automate their procurement operations, from creating a purchase requisition to issuing payment. Usually, P2P software solutions streamline the order-to-invoice process, spend management, approval workflows, supplier relationships, and more.

What is the difference between procure-to-pay software and accounts payable software?

Procure-to-pay software solutions encompass a broader range of procurement activities, including creating purchase requisitions, purchase order management, invoice processing, receiving required goods, and issuing payments. An accounts payable system focuses specifically on processing invoices and handling vendor payments.

What is the importance of procure-to-pay software solutions?

Procure-to-pay solutions help businesses track purchases, streamline the creation and approvals of purchase orders and other related documents, unlock savings, and keep records for audits. As a result, employees avoid manual data entry errors, unauthorized purchases, maverick spending, and approval bottlenecks.

What are the benefits of a procure-to-pay system?

The benefits of a procure-to-pay solution include more efficient workflows for requesting and approving, better accuracy for procurement documents, complete visibility into all purchases and expenses, stronger supplier relationships, efficient contract management, and procurement compliance throughout the departments.

What features should businesses look for in procure-to-pay software solutions?

Businesses can get the best value from software that comes with multi-level approval workflows, expense control, inventory management, automatic 2- and 3-way matching, supplier relationship management, and easy-to-use templates for purchase requests, purchase orders, invoices, and receipts.

How does a P2P software work?

Procure-to-pay software provides users with a range of modules and features that allow users to easily complete the following steps in the system: Requisition: Employees create and submit purchase requisitions for needed items or services. Approval: The requisitions go through an approval workflow, where managers review and approve them. Purchase order: Once approved, procurement managers can convert purchase requisitions into purchase orders (POs) and send them to suppliers. Receiving: Upon delivery, the appointed users create receipts and verify them against the POs. Invoice matching: Supplier invoices are automatically matched with their POs and receipts to ensure accuracy. Payment: Approved invoices are processed for payment, completing the transaction.

Skyrocket cost-efficiency with AI-powered 3-way match and OCR

Q: What does the department of accounts payable do in a 3-way match process, and why is it important?

Three-way match, an accounts payable task, is a process of comparing purchase orders (POs), receipts, and supplier invoices to check for any discrepancies and ensure data accuracy before payment. A 3-way invoice match helps prevent overpayments, fraud, and errors, ensuring financial control and cost-efficiency.

Q: How does Precoro automate the 3-way match?

Precoro centralizes purchase orders, receipts, and invoices and automatically compares them during the three-way matching process to detect discrepancies. In addition, Precoro is the best OCR software for invoice processing, making it easy to extract all the relevant invoice data in a few seconds with 95% accuracy. As a result, our 3-way match software highlights discrepancies, sends real-time alerts, and automates workflows to resolve issues, saving time and reducing manual effort.

Q: What happens if a discrepancy is found during the three-way match?

If a mismatch is detected, our 3-way match software flags the document for review and notifies the relevant users. Everyone involved in the intake-to-pay process can collaborate directly within Precoro to investigate and resolve the issue. Whether it’s incorrect pricing, quantities, or incomplete deliveries, all of the issues can be sorted out with the internal team or suppliers within our procurement centralization platform.

Q: Can Precoro’s 3-way match software integrate with my accounting system?

Good news — it can! Precoro seamlessly integrates with popular accounting software like QuickBooks, Xero, and others. Integrating accounting systems with OCR software like Precoro, the AP department can ensure that only verified invoices are processed for payment, maintaining accuracy and preventing duplicate or unauthorized payments.

Q: How does the 3-way match improve financial transparency?

Precoro provides full traceability of matched and verified invoices, helping businesses maintain a clear record of approved transactions. When it comes to accounts payable, OCR software like Precoro plays a key role in timely invoice processing. The AP teams use our OCR software to ensure compliance with internal controls and audit requirements, offering peace of mind for the stakeholders and promoting trust among them.

Precoro is here to work while you get a cup of coffee! Let our 3-way match software process supplier invoices and compare them to POs and receipts. Using Google’s custom data extractor powered by AI, Precoro doesn’t just read the info but literally learns to understand the documents’ structure. Your AP team can easily confirm the accuracy of documents and prevent costly mishaps — all with no hustle and stress-free.

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Three-way matching is at the core of financial control and accuracy

With our 3-way match software, your AP department can easily compare documents and instantly check if there are discrepancies between the goods ordered, received, and invoiced for. Try Precoro — leave overpaying and frauds in the past!

Purchase order verification

With Precoro, all your purchase orders are safely stored in one place and are immediately available for the three-way match. Let Precoro automatically find relevant POs and analyze them for the order information. Always stay sure of what was ordered, under which conditions, and for what price.

Receipt confirmation

It only takes a few seconds to create a receipt from the purchase order in Precoro. When it’s time for the 3-way match, the AP team turns to the receiving department for confirmation of the order’s delivery. Use Precoro for procurement centralization and communicate with everyone involved online in real time — three-way matching has never been easier.

Invoice validation

Precoro helps companies ensure they only pay what they really do have to pay. Our 3-way match software offers security and certainty that the information in the invoice is identical to that in the PO. We use OCR technology powered by a custom extractor with generative AI, so supplier invoices are processed literally in a few clicks.

Applying AI where it really matters

For Precoro’s team, AI isn’t just a buzzword. We are constantly following the latest technology developments to implement them and help our clients make their procurement process better. Precoro is the best OCR software that takes the productivity of AP teams to a new level!

OCR

Automation

Holistic data

OCR of the highest precision

We’ve partnered with Google and are now offering Precoro customers OCR technology powered by a custom extractor with generative AI. Our technology doesn’t just read your invoices — it understands them.

Optical Character Recognition powered by Google AI
Complete document layout recognition with all key details extracted
Constantly learning about your document structure
Remembering your team’s choices for every field
Instant recognition with 95% precision

Precoro’s on the lookout to protect your finances

Our 3-way match software is a reliable tool for finding discrepancies in procurement-related documents. Precoro is the best OCR software for invoice processing and detecting questionable data — so that the AP department is always notified in time!

Incorrect prices and totals

Are you wondering where the total in the supplier invoice came from? During a 3-way match with a reliable automation tool, the AP team will know immediately.

Wrong TAX amount

Did the supplier choose the wrong TAX rate for your international order? No worries, Precoro will notify the AP team!

Items repeated or missing

Does it look like something is missing from the invoice, or is an item listed twice? Our 3-way match software will check the PO and the receipt to confirm.

Missing receipt

The receiving department hasn’t issued the confirmation document? You’ll immediately see that the receipt is missing.

Inaccurate volume or damaged items

Is something wrong with the delivery? We’ll compare the receipt to the purchase order and let you know!

Duplicated documents

Has the vendor sent the invoice twice? No worries, Precoro will make sure you only pay for the correct one.

Enjoy the benefits of the reliable three-way matching

Avoid mistakes and improve profitability

Boost your company’s bottom line by preventing financial losses. Include the automated 3-way match of purchase orders, receipts, and invoices in your procurement workflows, and forget about fraudulent invoices, human mistakes, and duplicate payments.

Keep finances transparent and be prepared for an audit

Financially responsible companies conduct the 3-way match in procurement to be prepared for the auditor’s review. Auditors are actively searching for discrepancies in the company’s financial records, so having the documents matched and assessed can definitely speed up the process and contribute to the company’s credibility.

Improve supplier relationships

Easily conduct 3-way match sessions regularly and build trustful relationships with your vendors and suppliers. With our accounts payable OCR software and Supplier Portal, cooperation on the invoices becomes convenient, open, and time-efficient. Recognizing the issue and cooperating to act on it is the foundation for long-term productive supplier relationships.

Precoro is a game-changer for every team involved

In procurement, the 3-way match process is a team effort. For the matching process to run smoothly and on time, everyone involved has to play their role. Precoro will help every step of the way!

Purchasing team

Precoro’s automation capabilities make it easy to create purchase requisitions and orders, track their statuses online, and link them to the receipts and invoices later. The purchasing team can easily access relevant POs at any moment, attach documents, or leave comments so that any issue is resolved directly in Precoro.

Our 3-way match software offers a detailed overview of the entire intake-to-pay process and helps to centralize its management.

Inventory department

When the inventory team receives and inspects the order, it can quickly convey the items' quantity and quality to everyone involved by creating a receipt in Precoro. Whether goods were delivered in full or partially, the inventory department can specify all the details in the receipt while easily creating it from the PO in Precoro.

To prevent unjustified payments, the procurement managers can configure our 3-way match software to prevent invoice payment until it’s properly matched with the receipt.

Accounts payable team

With Precoro, the AP department can issue the payments with confidence without wasting hours on invoice investigation. After receiving the supplier invoice, OCR software scans it and extracts relevant data. Precoro then conducts an automatic 3-way matching process and notifies everyone involved of any discrepancies.

By the time the payment is made by accounts payable, the 3-way match is completed, and the invoice is verified.

Vendors and suppliers

Of course, the invoice issuer also participates in the three-way match. Precoro helps simplify and automate communication with suppliers by granting them access to the dedicated Supplier Portal. Suppliers can organize their purchase orders or requests for proposals directly in the Portal and send their invoices to clients via Precoro.

If any question about an invoice arises during the 3-way match, it can be conveniently resolved with the suppliers online in the Portal.

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FAQs about the 3-way match in procurement

What does the department of accounts payable do in a 3-way match process, and why is it important?

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