accounts+payable

What is 3ways match

http://www.accountingcoach.com/blog/what-is-three-way-match

= What is the three-way match? = In [|accounting], the three-way match refers to a procedure used when processing an [|invoice] received from a [|vendor] or supplier. The purpose of the three-way match is to avoid paying incorrect and perhaps fraudulent invoices.

// Three-way // refers to the three documents involved: // Match //refers to the comparison of the quantities, price per unit, terms, etc. appearing on the vendor's invoice to the information on the purchase order and to the quantities actually received.
 * 1) Vendor's invoice which was received and will become part of an organization's [|accounts payable] if approved.
 * 2) Purchase order that was prepared by the organization.
 * 3) Receiving report that was prepared by the organization.

After the vendor's invoice has been validated by the three-way match, it can be further processed for payment.

The three-way match is an important step in safeguarding an organization's assets.