![]() Below are the key benefits of 3-way matching: Minimise FraudĪccounts payable staff can compare an invoice received from a supplier to the corresponding purchase order and a goods receipt to determine immediately whether it accurately represents products and services delivered to the company. What are the Benefits of Three-way Matching?īusinesses can track the source of invoices and confirm their legitimacy by using three-way matching. The process helps prevent fraud by detecting falsified invoices as well as human error. The Account department can use these three documents to crosscheck an invoice before making payment, in order to verify that it is legitimate. This is then usually forwarded to the Accounts department. Goods ReceiptsĪ receipt of delivery note indicates that the goods have been accepted by the receiver and outlines the quantity, title, and delivery condition of the goods. The request is then sent to the purchasing department, which documents the product or service the individual or department needs, the quantity and quality desired, as well as the price it will pay. In order to accomplish their work, individuals or departments submit request detailing what they need, how many, and for what purpose they need it. An invoice from a supplier essentially asks for payment of money owed. ![]() Suppliers will clearly detail the goods or services they have delivered, the quantities, the unit prices, and any other relevant details in their invoices. These documents include: A Supplier’s Invoice An invoice can be confirmed to represent goods supplied or services rendered by matching three documents. Before making payments, the related documents must be verified. Key Elements of Three-way MatchingĬross-verification of related documents is part of the three-way matching process. ![]() In order to determine whether an invoice is legitimate or fraudulent, one needs only verify whether the business requested and as well received the goods/services claimed on the invoice. The goods/services have been received by the business.Invoices are issued for items requested by businesses, and for those goods/services.Verification of invoices through three-way matching involves examining relevant documents proving that: In most cases, payment is issued to the supplier after a 3-way match has been made. To eliminate fraud, save money, and maintain adequate records for auditing, three-way matching involves matching purchase orders (POs), goods receipt notes, and supplier invoices. ![]()
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