Three Way Match Procurement Definition
When it comes to accounts payable, the three way match procurement definition is pretty simple – it’s the process of matching the purchase order, goods receipt, and invoice for a single transaction. This can be done manually, but most businesses opt for automated systems that can handle the heavy lifting.
The benefits of a three way match are many, but chief among them is that it helps to prevent errors and fraud. By making sure that all three documents match up before payment is made, businesses can be confident that they’re only paying for what they ordered, and that the invoices are accurate.
There are a few different ways to set up a three way match system, but most businesses will use some combination of ERP software and document management software. ERP systems typically have built-in functionality for matching purchase orders, goods receipts, and invoices, while document management systems provide a central repository for all of your organization’s documents.
If you’re not using either of these types of software, you can still set up a three way match system using Microsoft Excel or another spreadsheet program. The key is to have a dedicated person or team responsible for maintaining the spreadsheet and keeping it up-to-date. This isn’t the ideal solution for most businesses, but it can work in a pinch.
No matter how you choose to set up your three way match system, the important thing is that you do it
