![]() ![]() The invoice is checked to ensure the details match the PO – this is done via an approval process.The buyer receives an invoice from the supplier, for the PO.A purchase order (PO) is sent to a said supplier, detailing the order. An order is placed with a supplier of a specific service or product.All three documents must match in order for the payment to be processed. The three documents that are matched are the purchase order, the goods receipt, and the invoice. How does 3-way matching in accounts payable work?ģ-way matching is a process put in place to ensure that the correct invoice is being paid. And that, essentially, is a 3-way matching process. When these three documents are in circulation, and the details of the order or purchase correspond, then the buying business can release payment. A goods receipt note from the buyer to the supplier is sent.A purchase order (PO) is sent for goods or services.These pieces of documentation are the three steps to an order or request of goods or services by a business to a supplier. Simply put, 3-way matching process is checking that three specific pieces of documentation in an invoice paying process, correspond. But what is 3-way matching in accounts payable? Let’s unpack the process here. But there’s innovation here – a way to make that 3-way matching faster, more streamlined. A 3-way matching process has been in practice in this regard for quite some time. It stands to reason, then, that heavy vetting in this area of the business is a crucial element. The rise of artificial intelligence (AI), though, has been monumental in making accounts payable faster, more accurate, and infinitely more secure. The department that approves payments for bills outstanding.Īccounts payable, up until quite recently, has been a largely manual process, miring the work in tedium and inefficiencies, and opening a business’s record-keeping up to costly human error. It’s easy to see why – this is the money-out function. ![]() There’s one corporate organism within an enterprise’s ecosystem, though, that perhaps relies more heavily on processes that are more focused, carefully managed, and systematic – the accounts payable department. And whether within human resources, the marketing team, or sales, these processes (when streamlined and working) are the very elements that ensure the business ecosystem maintains harmony, internally. We know, as entrepreneurs and businesspeople, that an organization is an ecosystem of processes. ![]()
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