{"id":23848,"date":"2023-08-03T10:04:15","date_gmt":"2023-08-03T10:04:15","guid":{"rendered":"https:\/\/envoice.eu\/?p=23848"},"modified":"2024-01-31T09:24:56","modified_gmt":"2024-01-31T09:24:56","slug":"3-way-matching-in-accounts-payable","status":"publish","type":"post","link":"https:\/\/envoice.eu\/en\/blog\/3-way-matching-in-accounts-payable\/","title":{"rendered":"Transforming 3-Way Matching in Accounts Payable"},"content":{"rendered":"

Your accounting and accounts payable department needs extra vigilance to <\/span>keep fraudsters out.\u00a0<\/b><\/p>\n

As the departments in charge of handling payment approvals and disbursement, team members handling these functions should have adequate <\/span>internal controls<\/b> to verify the validity of a supplier invoice.\u00a0<\/span><\/p>\n

This is where the process called three-way matching comes in.\u00a0\u00a0<\/span><\/p>\n

What is Three Way Matching?<\/b><\/h2>\n

A three-way matching process refers to the practice of comparing three primary documents to <\/span>detect exceptions like errors, duplicates, or fraud<\/b>. In a 3-way match, your Accounts Payable staff needs to check these documents:<\/span><\/p>\n

Purchase Order<\/b><\/h3>\n

Also known by its acronym PO, the approved purchase order proves that the company authorized the purchase. Your PO should list the item, quantity, price, delivery date, and other information needed to fulfill the order. Purchase orders should have a unique number that companies can use for reference and monitoring.\u00a0<\/span><\/p>\n

Goods Receipt Note or Delivery Receipt<\/b><\/h3>\n

AP teams also need to look for the delivery receipt or receiving report which serves as proof of partial or full delivery of a product. Your delivery receipt which should have a unique identifier should indicate the date of delivery, the person who received the order, and the quantity.\u00a0<\/span><\/p>\n

\"delivery
Courtesy of Canva\/GettyImages<\/figcaption><\/figure>\n

Supplier Invoice<\/b><\/h3>\n

Invoices refer to a document issued by your supplier to collect payment. Your supplier’s invoice should have a unique identifier. Payment details, including the quantity, amount, and payee show up on the invoice.<\/span><\/p>\n

How to Perform a 3-Way Match<\/b><\/h2>\n

Doing a three-way match requires a purchase order, delivery receipt, and invoice. To perform these tasks, AP teams compare the items, quantity, and price indicated in these three documents.<\/span><\/p>\n

Comparing the Purchase Order and Invoice<\/b><\/h3>\n

Companies often route purchase orders for approval based on the purchase requisition sent by the concerned department. As long as the invoice matches the purchase order, companies can expedite the invoice approval process since the PO has been pre-approved.\u00a0<\/span><\/p>\n

\"purchase
Courtesy of Canva\/GettyImages<\/figcaption><\/figure>\n

When performing a 3-way match, employees should look into the following:<\/span><\/p>\n