Three-Way Match Exception Management – Multi-Location Retailer
The Challenge:
A home improvement retailer with 25 stores processed 5,200+ monthly vendor invoices with 28% requiring manual three-way match exception resolution (price variances, quantity discrepancies, receiving timing differences). Exception resolution averaged 12 days causing vendor payment delays, strained relationships, and missed early payment discounts worth $125K annually.
The Solution:
Enhanced Dynamics 365 Finance three-way matching with intelligent exception handling via Azure AI categorizing discrepancies and routing via Power Automate to appropriate resolvers (buyers for price issues, receiving for quantity issues). Power Apps mobile enabled store receivers to immediately address receiving discrepancies. Fabric maintained supplier performance data including discrepancy rates by vendor. Copilot suggested resolutions based on historical patterns and vendor agreements. Power BI tracked exception aging, root causes, resolution times, and process compliance.
Result:
Three-way match exception rate reduced from 28% to 9% through process improvements and buyer/vendor accountability, resolution time decreased from 12 days to 3 days improving vendor relationships, and early payment discount capture improved from 55% to 89% saving $107K annually. Buyer productivity improved 40% through intelligent exception routing and resolution suggestions, and vendor invoice accuracy improvement reduced AP workload by 35%.