Two-Way and Three-Way Matching Accounts Payable are an essential part of accounts payable. They refer to the process of comparing a vendor invoice, goods receipt record, and purchase order against each other to ensure accuracy and proper payment. This type of matching helps organizations efficiently manage their working capital by reducing discrepancies and ensuring that funds are not incorrectly paid out. It also helps prevent fraud and improve supplier relationships. By engaging in this process, businesses can release payments more quickly while still having assurance that they have made the correct payment.