What is three way matching? #
Three-way matching is a process used in accounting and finance to ensure that the details of a purchase match up with the corresponding invoice and the purchase order. It is a form of reconciliation that is used to verify that the items, quantities, and prices listed on the purchase order match up with the invoice and the goods received.
The process of three-way matching typically involves the following steps:
Compare the purchase order to the goods received, to ensure that the items, quantities, and prices match up.
Compare the invoice to the purchase order, to ensure that the invoice accurately reflects the details of the purchase order.
Compare the invoice to the goods received, to ensure that the items, quantities, and prices match up.
Three-way matching is an important part of the accounts payable process, as it helps to ensure that the company is paying for the correct goods and services, and at the correct prices. This process helps to prevent errors and fraud and also helps to maintain accurate financial records.