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What is a Three Way Match?The term "Three Way Match" refers to the process of ensuring an invoice is okay to pay. The benefits of not over paying are obvious. Overpaying is a serious problem in all organizations that process many invoices if not rectified.
The proper process is to match the invoice against the accepted accrual of goods and services before you pay any invoice.
Let's break this down. "Accural" means what you owe. In threee way matching you look at whether all or part of the invoice was already paid, whether you have received and accepted the goods and services in question, and whether the pricing on the invoice matches the pricing on the order. The review of these three sources is called three way matching.
Three way matching is a basic Accounts Payable accounting term. The three way matching procedure is used to ensure that only authorized purchases are reimbursed, thereby preventing losses due to fraud and carelessness.
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.
If you are looking to fully automate three way matching, two way matching, and hybrid processes, give Aestiva a call.
See AlsoTwo 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 NoteAestiva's procure to pay systems include include three way invoice matching but will also do two way matching and custom matching. Call for details.