Three Way Match Invoice Definition
A three way match invoice is an invoice that includes three elements: the purchase order, the receipt, and the vendor invoice. The three elements must match in order for the invoice to be considered valid. This type of invoice is typically used in businesses where accuracy and precision are critical, such as in the medical field.
The purchase order is the first element of a three way match invoice. It includes the date of the purchase, the items or services purchased, the quantity of each item or service, and the price per unit. The purchase order also usually includes the name and contact information of the vendor.
The second element of a three way match invoice is the receipt. The receipt must include all of the same information as the purchase order, plus it must also include a confirmation that all items or services were received. In some cases, businesses will require that a signature be included on the receipt in addition to this confirmation.
The third and final element of a three way match invoice is the vendor invoice. This document should include all of the same information as both the purchase order and receipts, plus it should also include any additional fees or charges that may apply (such as shipping costs). Once all three documents have been collected, they can then be compared to ensure that they all match up. If there are any discrepancies between them, it can invalidate the entire invoice.
