Two way matching is checking with PO and invoice of goods . Where as three way matching is checking with PO, Goods receipt and invoice of goods.

Question

Accepted Answer

Two way matching compares PO and invoice, while three way matching adds goods receipt to the comparison.

Two way matching ensures that the goods or services ordered match the invoice received.
Three way matching adds an additional step of verifying that the goods have been received as per the PO.
Three way matching is more comprehensive and reduces the risk of overpayment or payment for goods not received.
Two way matching is commonly used for low-value purchases, while three way matching is used for high-value purchases.
Automated software can be used to streamline the matching process and reduce errors.

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