How Epicor AP 3-Way Match Works
Epicor's 3-way match compares three documents: the Purchase Order (what you agreed to buy), the Receipt (what you actually received), and the AP Invoice (what the supplier billed you). All three must agree — within configured tolerances — before the invoice can be posted.
When they don't agree, Epicor blocks the posting and flags a match exception. The type of exception tells you where to look.
Step 1: Identify the Match Error Type
Open the AP invoice in Financial Management > Accounts Payable > General Operations > Invoice Entry. On the Match tab (or the Lines tab, depending on your Epicor version), look for the match status icon or error indicator on each line. Common error types:
- Quantity mismatch — the invoice quantity exceeds the received quantity (or PO quantity)
- Price mismatch — the invoice unit price differs from the PO unit price beyond the configured tolerance
- No receipt found — the invoice references a PO but no matching receipt exists
- UOM mismatch — the invoice unit of measure differs from the PO or receipt UOM
Fix 1: Quantity Mismatch — Invoice Quantity Exceeds Receipt
This happens when the supplier invoices you for more than what's been received. You have two options:
Receive the Remaining Quantity
If the goods have arrived but the receipt hasn't been entered, go to Inventory Management > Receipts > Receipt Entry and record the receipt. Once the receipt quantity matches the invoice quantity (within tolerance), the match will clear.
Adjust the Invoice Quantity
If the supplier invoiced you for more than was delivered, correct the invoice quantity to match what was received. You can then process a separate invoice (or credit memo) for the remaining quantity when the goods arrive.
Fix 2: Price Mismatch — Invoice Price Exceeds PO Price
When the supplier's invoice price differs from the PO, you have three options:
Update the PO Price
If the price change was legitimate (price increase agreed to verbally, contract update), update the PO unit price to match the invoice. Go to Purchase Management > Purchase Orders > [PO] > Lines and update the unit price. The invoice match will then clear within tolerance.
Adjust Quantity Tolerance to Absorb Small Variances
For small price differences (rounding, freight-included pricing), you can temporarily adjust the AP price tolerance in Financial Management > Accounts Payable > Setup > AP Parameters. Use this sparingly — tolerance settings apply globally, not per-invoice.
Post the Price Variance to a Variance Account
If the price difference is legitimate but you don't want to change the PO, Epicor can post the variance amount to a Purchase Price Variance (PPV) account. Verify your PPV account is set up in the GL Control Codes before using this approach.
Fix 3: No Receipt Found — PO Referenced But Not Received
If the invoice references a PO line but no receipt exists in Epicor, verify:
- The goods were actually received — if not, hold the invoice until receipt is entered
- The receipt was entered against the correct PO number and line number
- The PO line is in "Open" status — closed or cancelled PO lines can't receive against them
If the receipt exists but isn't linking, check whether it was entered with the correct PO reference on the receipt header.
Fix 4: Unit of Measure (UOM) Mismatch
UOM mismatches are common when a supplier invoices in "each" but the PO and receipt were in "box" (or vice versa). To fix:
- Determine what UOM the PO and receipt are in
- Either convert the invoice quantity to match, or update the PO's UOM if the supplier legitimately invoices in a different unit
- Ensure the UOM conversion is set up in Epicor's UOM maintenance if you need to convert between units
Overriding a 3-way match exception without understanding the cause can create GL discrepancies that surface later during reconciliation. Always investigate the source of the mismatch before forcing a match through.
Adjusting Global AP Match Tolerances
If your company regularly deals with small rounding variances from suppliers, you can configure match tolerances in Financial Management > Accounts Payable > Setup > AP Parameters:
- Quantity Tolerance % — percentage by which the invoice quantity can exceed the receipt
- Price Tolerance % — percentage by which the invoice price can exceed the PO price
- Amount Tolerance — fixed dollar amount tolerance for total invoice variance
These settings are global — they apply to all AP invoices. Set them to match your actual purchasing policies, not just to clear current exceptions.
Still Stuck? We Can Help.
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