ENTREPRENEURSHIP

Detailed explanation-1: -What is three-way matching? A three-way matching is the process of matching purchase orders (PO), goods receipt note, and the supplier’s invoice to eliminate fraud, save money, and maintain adequate records for the audit trail. Three-way matching is usually done before issuing payment to the supplier post delivery.

Detailed explanation-2: -Before agreeing to pay an invoice from a supplier, the purchase order, goods receipt note, and invoice from the supplier are compared. This standard practice is known as a “three-way match."

Detailed explanation-3: -Three-way match is the process of comparing the purchase order, invoice, and goods receipt to make sure they match, prior to approving the invoice. This ensures that the customer’s order, the supplier’s delivery, and the goods receipt note (GRN) all reflect the same information.