3 way match in Ap process

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Accepted Answer

3 way match is a process in accounts payable where the purchase order, receiving report, and invoice are matched to ensure accuracy.

The purchase order, receiving report, and invoice are compared to ensure that the goods or services were received, the price is correct, and the quantity is accurate.
This process helps to prevent errors and fraud in the accounts payable process.
For example, if a company orders 100 units of a product, but only receives 90, the 3 way match process would catch this discrepancy and prevent payment for the missing 10 units.
The 3 way match process is typically automated through accounting software, but may also be done manually.
If there are discrepancies in the 3 way match process, they must be resolved before payment can be made.

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