![]() Imagine that an ice cream shop has ordered 1,000 boxes of waffle cones at a price of $1 each. Sticking with the 3-way match process, here’s a quick example of how it works. How the accounts payable 3-way match works Tolerances refer to the quantity or quality of accepted goods. Without this verification, 2-way matching leaves room for the possibility of underpaying or overpaying for the goods received.įour-way matching takes the invoice, purchase order, and receipt, adding a concept called tolerances into the verification process. It’s less time-consuming than a 3-way match but leaves out the details contained on the receipt. Two-way matching involves verification using the invoice and purchase order. While 3-way matching in accounts payable is one form of verification, businesses also often use 2-way or 4-way matching instead. If there are any errors or discrepancies, you’ll spot them by noting if one document contains different information in comparison to the others. This ensures that the amount paid to the vendor matches the goods or services provided. Transaction details should remain consistent across these three documents. The term 3-way matching in accounts payable refers to the practice of cross-referencing three key documents: 3-way match in accounts payable explained Keep reading to learn how the accounts payable 3-way match process works, along with its benefits. One tactic used by many is 3-way matching, designed to mitigate risk by highlighting fraudulent or inaccurate invoices. The accounts payable process comes with a series of built-in checks to help businesses streamline the bill-paying process. ![]()
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