3-way matching is the process of verifying that an invoice matches the purchase order and the receipt before approving payment.
3-way matching is a process in accounts payable that helps ensure invoices are accurate before payment. It involves comparing three key documents: the purchase order (PO), the goods receipt or service report, and the supplier invoice. Payment is only approved if all three documents match in terms of quantities, prices, and terms. This process helps prevent errors, overpayments, and fraud.
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Why Implementing 3-Way Matching is Important
58% of AFP Payments Fraud and Control Survey respondents report that email scams have at some point targeted their accounts payable departments. What can businesses do to protect themselves from paying money for fraudulent invoices? They can introduce three-way matching to the purchasing flow.
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