There are three documents that are integral for managing payments through accounts payable: invoices, order receipts, and purchase orders. Below, we'll touch on each of them and their significance to the matching process:
To ensure that every order is complete, 3 way matching of invoices highlights discrepancies or inconsistencies between any of the critical documents listed above.
In the event that issues or errors are detected, such as an incorrect price or a damaged product, payment will be withheld pending a reconciliation of the issue and the invoice has been validated via 3 way matching.
Prior to being fulfilled, accounts payable scrutinizes the details of each of the three documents-invoice, order receipt, and PO-to verify that the product received matches what was ordered via the order receipt.
From there, the order is then verified, via the invoice, to ensure that the product received matches what the buyer is charged.
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