Three-Way Match Definition
A three-way match is the process of matching the purchase order, goods receipt, and supplier invoice to ensure that the correct product was received and invoiced. This is an important part of the Accounts Payable process and helps to prevent overpaying for goods or services.
The first step in the three-way match is to match the purchase order to the goods receipt. This ensures that the correct product was received. The second step is to match the goods receipt to the supplier invoice. This ensures that the supplier invoice matches what was actually received. Finally, all three documents are matched together to confirm that everything matches up and there are no discrepancies.
The three-way match is a important part of Accounts Payable and should be performed on all invoices to ensure accuracy and prevent overpayment.
