How do the Match Approval Level Option and Invoice Match Option work? [ID 433545.1]

There is no hold created in 12.1.3 as per the below explanation from the note

"So let's say we create a PO like #3 PO#5051 - 3 way/Purchase Order, however, we do not receive the
PO.  In this case we will receive a qty hold because we have the PO set to 3 way matching.
'Purchase order, receipt, and invoice quantities must match within tolerance before the
corresponding invoice can be paid.'
"

Please help

Vinod