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What is Three Way Matching?

3-way matching is a financial process used to ensure that the details of an invoice match the details of the corresponding purchase order and invoice history. In other words, it involves comparing the information on a purchase order, the goods or services that were actually received, and the corresponding invoice to make sure they all match.

This process helps to ensure that the correct goods or services were received and that the correct amount was invoiced and paid. It also helps to identify and prevent errors or discrepancies that could lead to financial loss or fraud.

What Is A 3-Way Match?

Let's break this down. "Accrual" means what you owe. In 3-way matching you look at whether the invoice exceeds what you owe. What you owe is the amount of goods and services you have received that you have not yet paid, also known as the accrual amount. When the ietms and amount of the invoice matches what you owe, you have a 3-way match.

Three way matching processes can almost always be automated. Even in situations without formal Purchase Orders and without formal receiving processes three way matching can be automated. Most organizations still use manual means to automate the matching process, leaving a lot of room for improvement.

Note: Aestiva offers a Software Unlimited Plan that provides customers with access to a wide range of software and modules, all for a single price, including tools for automating 3-way matching processes with high levels of sophistication and ease-of-use.

See Also

Two Way Matching, [After the fact approval], After The Fact Receiving, Aestiva Purchase Order, Invoice Authorization Software, Procure To Pay Software, Purchase Order Software.

Example Usage

"We currently only do two way matching but after we install Aestiva, we'll start doing three way matching. We're excited by the improvement we'll see in our spend controls. "

Purchasing Note

Aestiva's procure to pay systems include include three way invoice matching but will also do two way matching and custom matching. Call for details.