# Four-way match: order, confirmation, delivery note, invoice

> What a four-way match is, how it differs from two- and three-way matching, and which deviations are typical on building-material invoices, with an example.

A four-way match is an invoice check that compares four documents line by line: the purchase order, the supplier's order confirmation (Auftragsbestätigung), the delivery note and the invoice. The invoice is released for payment only when items, quantities, prices and terms agree across all four. In building-material procurement it is the most reliable way to catch partial deliveries, price changes and unjustified surcharges before the money goes out.

## What is a four-way match?

Each of the four documents answers a different question:

- **Purchase order:** What did we order, at what price, for which site?
- **Order confirmation:** What did the supplier commit to, and did they quietly change prices, quantities or delivery dates?
- **Delivery note:** What actually arrived on site and was signed for by the foreman?
- **Invoice:** What are we being asked to pay?

The match checks whether the answers fit together. When the invoice is off, the cause usually shows up in one of the other three documents: the confirmation had already raised the price, the delivery note shows a short delivery, or the item was never ordered.

## Two-, three- and four-way matching compared

| Method | Documents compared | Typically catches |
|---|---|---|
| Two-way match | Order ↔ invoice | Price deviations, items never ordered |
| Three-way match | Order ↔ delivery note/goods receipt ↔ invoice | Also quantities billed but not delivered |
| Four-way match | Order ↔ confirmation ↔ delivery note ↔ invoice | Also prices, quantities and terms changed in advance |

In classic ERP literature, the fourth document sometimes means a quality inspection at goods receipt. In building-material procurement the order confirmation is the far more important fourth document: this is where suppliers apply day prices, add freight flat rates or announce partial deliveries, and if nobody objects, exactly those changes end up on the invoice.

## Why matching matters so much for building materials

Building-material invoices are error-prone because a lot happens between order and invoice. Typical deviations:

- **Partial deliveries:** a truck brings 20 pallets instead of 24, the rest comes next week, but all 24 are often billed straight away.
- **Quantities and units:** ordered in m², delivered in packs, billed in pallets. Without conversion the difference goes unnoticed.
- **Prices:** day prices for steel or insulation, an expired framework contract or a new list price slip into the confirmation and then the invoice.
- **Freight and toll surcharges:** "delivered to site" was agreed, yet a freight flat rate, crane unloading or a toll surcharge appears.
- **Pallet deposits:** pallets and returnable containers are charged, but returns are not credited. Over a year this quickly reaches four figures.
- **Duplicate invoices:** the same delivery is billed by email and by post.

Then there is the organisation: the delivery note is on site, the order in the buyer's inbox, the invoice in accounting. Without bringing all four together, people end up checking only the total, or nothing at all.

## Worked example: four-way match of a building-material invoice

A site orders sand-lime bricks and thin-bed mortar, delivered to site. All amounts net:

| Line | Order | Order confirmation | Delivery note | Invoice | Deviation |
|---|---|---|---|---|---|
| Sand-lime brick 17.5 cm | 24 pal. at €412.00 | 24 pal. at €412.00 | 20 pal. | 24 pal. at €412.00 | 4 pallets not delivered: €1,648.00 |
| Thin-bed mortar 25 kg | 40 bags at €9.80 | 40 bags at €10.40 | 40 bags | 40 bags at €10.40 | Price raised in confirmation: €24.00 |
| Euro pallet (deposit) | – | 24 at €15.00 | 20 | 24 at €15.00 | Deposit for 4 pallets too many: €60.00 |
| Freight and toll | delivered to site | Freight €85.00 | – | €85.00 + toll €18.50 | Not agreed: €103.50 |
| **Total** | | | | **€10,767.50** | **€1,835.50** |

The correct amount would have been €8,932.00. A plain two-way match would only have found the mortar price and the freight. The three-way match also uncovers the missing pallets. Only the order confirmation shows that the supplier announced the price increase and the freight charge in advance, a sign that purchasing should have objected and should do so next time.

Around 17 % deviation on a single invoice is not unusual when partial deliveries and surcharges coincide. The 4 pallets will usually be delivered and billed again later; without a match the company pays for them twice.

## Common mistakes in invoice matching

- **Checking only the total.** Deviations cancel each other out; a credit here hides a surcharge there.
- **Filing the confirmation instead of checking it.** If you don't object to a deviating confirmation, your negotiating position is weaker later.
- **Capturing delivery notes too late.** If the delivery note reaches the office weeks later, the early-payment discount window has often closed.
- **Not normalising units.** Bags, pallets, m², tonnes and pieces must be converted before comparing.
- **Not tracking deposits.** Without matching returns against charged deposits, money stays with the supplier.
- **Setting tolerances too generously.** A blanket tolerance of a few percent lets through exactly the surcharges you want to catch.

## How Streckenheld helps

Streckenheld reads every incoming document (purchase order, order confirmation, delivery note and invoice, as PDF, scan, photo or handwritten delivery note) with AI, links it to the right order and compares the documents line by line. Differences in prices, quantities, units, taxes and totals are flagged before payment. Your team sees a short list of exceptions instead of a stack of paper. Pallets and returnable containers are tracked per supplier so deposits come back.

Learn more on the [invoice verification](https://www.streckenheld.com/invoice-verification.md) and [delivery notes](https://www.streckenheld.com/delivery-notes.md) pages and in the [AI reconciliation](https://www.streckenheld.com/guides/ai-reconciliation.md) guide. How faster verification helps you hit payment deadlines is covered in the article on the [early-payment discount (Skonto)](https://www.streckenheld.com/knowledge/early-payment-discount.md); how matching changes under the e-invoicing mandate in [e-invoicing 2027](https://www.streckenheld.com/knowledge/e-invoicing-2027.md).

## Frequently asked questions

### What is the difference between a three-way and a four-way match?

A three-way match compares the purchase order, the goods receipt (delivery note) and the invoice. A four-way match adds the supplier's order confirmation, so it also catches price and quantity changes the supplier announced before delivery.

### What tolerances are usual in invoice matching?

Many companies allow small rounding tolerances in the cent or per-mille range and review everything above that by hand. More important than a fixed number is that tolerances are set deliberately per supplier and product group and not quietly widened.

### What should I do if the order confirmation differs from the order?

Object promptly and in writing, before delivery. Under German law an acceptance with changes counts as a new offer, so staying silent and accepting the goods invites a dispute about which price was agreed.

### Is a four-way match worth it for small invoices?

Done by hand, often not; automated, yes. On many small building-material invoices, toll surcharges, pallet deposits and short deliveries add up, and software checks every invoice with the same effort.

### Who is responsible for matching in a construction firm?

Usually site management and accounting share it: the site confirms the delivery, accounting checks prices and terms. What matters is that both look at the same documents and resolve differences before payment.

## Read next

- [Invoice Verification for Construction Firms](https://www.streckenheld.com/invoice-verification.md): Invoice verification for construction: four-way match of order, confirmation, delivery note and invoice, contract prices, Skonto deadlines and SEPA export.
- [Digital Delivery Notes for Construction](https://www.streckenheld.com/delivery-notes.md): Digitise delivery notes: capture and sign them on site, let AI read even handwriting and match every delivery note to its order. Pallets tracked too.
- [AI Reconciliation for Invoices, Delivery Notes, and Orders](https://www.streckenheld.com/guides/ai-reconciliation.md): Automatically match supplier invoices against delivery notes, orders, and order confirmations. Catch overcharges, missing items, and pricing mistakes before you pay.
- [Early-payment discount (Skonto): definition and calculation](https://www.streckenheld.com/knowledge/early-payment-discount.md): Early-payment discount (Skonto) explained: typical terms, the effective annual interest formula with a worked example, and why construction firms miss it.

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Source: https://www.streckenheld.com/knowledge/four-way-match
Other languages: [Deutsch](https://www.streckenheld.com/wissen/4-wege-abgleich.md)
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