Three-Way Matching

In accounting, three-way matching is the process of matching the purchase order, goods receipt, and invoice for a single transaction. The purpose of this match is to ensure that the correct goods were received and that the invoice was for the correct amount.

This process can be done manually or through accounting software. When done manually, the accountant would compare the purchase order, goods receipt, and invoice for each transaction. If there are any discrepancies, they would need to be resolved before payment can be made.

When using accounting software, the system will automatically match the purchase order, goods receipt, and invoice. If there are any discrepancies, it will notify the user so that they can be resolved. This can save a lot of time and improve accuracy.