What is two way matching and three way matching?

Question

Accepted Answer

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

Two way matching ensures that the invoice matches the purchase order in terms of quantity, price, and terms.
Three way matching adds the receipt of goods to the comparison to ensure that the goods have been received and match the invoice and purchase order.
Two way matching is commonly used for low-value purchases, while three way matching is used for high-value purchases.
Two way matching helps prevent overpayment and underpayment, while three way matching helps prevent fraud and ensures accuracy.
Example: A company orders 100 units of a product at $10 each. When the goods are received, the company verifies that they received 100 units and that they match the purchase order. When the invoice arrives, they verify that it is for 100 units at $10 each and matches the purchase order and receipt of goods.

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