Three-Way Matching
A verification process that compares purchase orders, receiving reports, and invoices to ensure accuracy before payment authorization.
Key Details
- Three-way matching is a cornerstone of accounts payable controls, preventing overpayment and fraud.
- The process matches three documents: the purchase order (PO), the goods receipt or receiving report, and the vendor invoice.
- Discrepancies between any of the three documents trigger exception workflows for manual review.
- Automated three-way matching reduces processing time from days to minutes while improving accuracy.