If there are any discrepancies in the three components, the AP department may send only a partial payment or temporarily withhold payment. Once all three documents have been received by your accounts payable department, you’ll need to scrutinize each to verify that all information is correct before payment is issued. Your AP team will verify the PO number, supplier, items delivered, and quantity received against the purchase order and invoice as part of the three-way matching process. Upon delivery of the purchase, the receiving department completes an order receipt, indicating the items received and the quantity of each. This invoice is compared to the purchase order and order receipt to confirm that all elements of the documents are the same, including the PO number, the items requested and delivered, the number of items received, and the amount charged per item. The AP department receives an invoice from the supplier once the purchase has been shipped. During the three-way matching process, your AP team will verify that the information on the purchase order matches the details of both the invoice and the order receipt. A purchase order should clearly state the supplier, PO number, requested item, desired quantity, and the agreed-upon price. The first step in the procurement process is to submit a purchase order to the supplier. It requires your AP team to examine three documents related to the purchase, confirming that all the pertinent information is consistent between them before a payment can be issued. The three-way matching process involves three separate components. Implementing a three-way matching process in the accounts payable workflow can save your company significant time and money, eliminate fraud, improve relationships with suppliers, and streamline the auditing process.

The Association of Certified Fraud Examiners (ACFE) estimates that companies lose 5% of their revenue every year due to fraud. It allows your AP department to identify any inconsistencies that could indicate a supplier error or fraud, and ensures that there are no overpayments. Three-way matching in accounts payable refers to the process of verifying purchase order numbers, supplier details, items, quantities, and order amounts across a supplier’s invoice, purchase order, and delivery receipt. Automating the Three-Way Matching Process What Is Three-Way Matching in Accounts Payable?

Three way match ap