Field notes
Three-way match gaps that quietly drain cash
When purchase orders, receiving notes, and invoices disagree, the loss rarely shows up as a single fraud case—it accumulates in small mismatches.
In many Taiwanese mid-market firms, the three-way match exists on paper while warehouse clerks stamp goods receipts from memory and AP clerks clear invoices under time pressure. The control fails in the handoff, not in the policy binder.
A procurement controls audit looks for patterns: invoices paid without a matching receipt quantity, receipts posted against closed POs, and price variances approved by the same buyer who raised the order. Each pattern points to a different fix.
Start with a sample of high-value lines rather than every SKU. Trace each line from requisition to payment and note where signatures appear after the goods have already moved. Those after-the-fact approvals are where spend leakage hides.
Remediation is rarely a new form alone. Receiving staff need time to count, and AP needs a clear rule for when a variance can be accepted without purchasing re-approval. Write those rules in the language of the dock and the desk, not the audit committee.
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