Three Way Matching Accounts Payable Definition
In accounting, three-way matching is a process used to ensure the accuracy of invoices and payments. In this process, the vendor’s invoice is compared to the purchase order and receiving report to verify that the correct goods or services were received and that the prices charged are accurate. Once all three documents have been matched, the invoice can be approved for payment.
The three-way matching process is an important control in accounts payable because it helps to prevent overpaying for goods or services. This process can be time-consuming, but it is worth the effort to avoid making errors in payments.
