Three Way Po Matching Definition
In business, three-way PO matching is the process of comparing the purchase order (PO) to the goods receipt and invoice to ensure that they match up correctly. This process helps to ensure that businesses are only paying for the goods or services that they have received, and that these items match the description in the original purchase order.
There are a few different ways that three-way PO matching can be performed, but the most common method is to use software that can automatically compare the three documents and flag any discrepancies. This type of software can be particularly helpful for businesses with large numbers of purchase orders, as it can save time and prevent errors.
Three-way PO matching is an important part of effective procurement and can help businesses to avoid overspending or paying for goods or services that they have not received. By taking the time to set up this process, businesses can help to improve their financial control and efficiency.