MANAGEMENT

Detailed explanation-1: -Three-way matching is an accounts payable process that checks that the details on a purchase order, the supplier’s invoice and the delivery receipt match before an invoice is paid. Two-way matching checks only the details of the supplier’s invoice against the details of the purchase order.

Detailed explanation-2: -In a specific accounts payable (AP) context, three-way match is the process of cross-referencing and verifying your accounts payable expenses using a set of three different documents-the invoice, the purchase order, and the receipt-in order to avoid any erroneous charges.

Detailed explanation-3: -A three-way match is an accounting control that ensures that the purchase order, inventory receipt, and invoice all match in terms of product, quality, quantity and price. The process starts when purchasing creates an order and sends it to a vendor.

Detailed explanation-4: -A 3 way match is an internal control process that cross-references a supplier’s invoice against its corresponding purchase order (PO) and good received note (GRN). The goal here is to ensure that financial details (order quantity, order amount, total amount, PO number etc.) match across all 3 documents.