The 3 way matching concept

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The 3 way matching concept ensures that the purchase order, invoice, and receiving report match before payment is made.

The purchase order is created by the buyer and includes details such as quantity, price, and delivery date.
The receiving report is created by the receiver and confirms that the goods have been received and are in good condition.
The invoice is created by the seller and includes details such as the price and quantity of goods delivered.
All three documents must match before payment is made to ensure accuracy and prevent fraud.
For example, if the purchase order is for 100 units of a product, the receiving report should confirm that 100 units were received, and the invoice should reflect the same quantity and price.

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