MANAGEMENT

Detailed explanation-1: -To verify an invoice, you need to match the invoice with the purchase order, delivery receipt, the standard sales tax, and the discounts agreed upon. This may take an hour, especially if the invoice has been stacked for a while. Therefore, the most efficient way to verify an invoice is by using invoicing software.

Detailed explanation-2: -Three-way matching is an accounting process that compares what was ordered (the purchase order), what was delivered (receipt) and the supplier’s invoice to verify that an invoice is legitimate and ready to be paid.

Detailed explanation-3: -What is 2-way vs. 3-way matching in accounts payable? 2-way matching in accounts payable makes sure all data on the purchase order and invoice aligns. 3-way matching in accounts payable goes one step further and makes certain the data on the purchase order, invoice and sales receipt are the same.