Three Way Match Process Definition
The three way match process is the heart of an Accounts Payable (AP) department and is used to ensure that all invoices are valid and have been authorized for payment. This process involves matching the invoice to the purchase order and receiving report to verify that the goods or services have been received as ordered. Any discrepancies between the documents must be resolved before payment can be made.
The three way match process can seem like a lot of work, but it is essential in maintaining accurate financial records and preventing fraud. This process ensures that all invoices are valid and authorized for payment, which protects the company from paying for goods or services that were never received. Additionally, by matching the invoice to the purchase order and receiving report, any discrepancies can be identified and resolved before payment is made. This helps to prevent overpaying for goods or services, which can save the company money.
