What is the three-way matching rule?

Question

Accepted Answer

3 way matching rule is a process in accounts payable where the purchase order, receiving report, and vendor invoice are compared to ensure accuracy.

Involves matching the purchase order with the receiving report and vendor invoice
Ensures that the quantities, prices, and terms on all three documents match
Helps prevent errors, fraud, and discrepancies in payments
Example: If a company orders 100 units of a product, receives 90 units, and is invoiced for 100 units, the 3 way matching rule would catch the discrepancy

Accepted Answer

In accounting, one of the most common types of invoice matching is called the 3-way match. Three-way match is the process of comparing the purchase order, invoice, and goods receipt to make sure they match, prior to approving the invoice.

Accepted Answer

Verifying all the 3 documents {Invoice+ Purchase order+ goods received note}

Accepted Answer

Where the Price and Quantity in the Invoice should be math with purchase order with GR/IR report

Accepted Answer

3 way match where the price and quantity should be match with the PO and GR/IR report.

For ex:- 200 kg of material, 500 tshirts etc.

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What is the three-way matching rule?

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