![]() ![]() The PO remains in the ‘open’ status as more invoices are processed and matched against it. In some cases, even gathering the required documents also takes a long time. Manual verification of information on various documents is a time-consuming process. The intent of the 3-way matching is to ensure that the goods ordered, goods received, goods billed, order price and the billed amount are consistent across the PO, GRN, and invoice. And the packing slip or receipt should reflect the items or services identified in both the PO and the PO invoice. ![]() The supplier, purchased goods or service, and amounts are approved as part of the PO purchase requisition process leading up to creation of the purchase order. This ensures no extra charges are incurred without your business knowing about it. The chances of fraudulent activities are also significantly reduced with so many checks and balances in place. First and foremost, ensuring accurate information helps your team avoid overpaying for a product or service, paying for items you didn’t receive, or paying the same bill more than once. Having a system can help you avoid submitting fraudulent invoices and keep your accounts payable flowing. This is the easiest way to determine the validity of an invoice and ensure only authorized payments are being made.Īt the same time, you want to avoid the hassle of tracking down late payments while ensuring that your accounts payable and finance departments can do their jobs quickly and accurately. Once all of these steps are completed, it is confirmed that the order according to the invoice has been fulfilled, and the business requesting those goods has in fact received them. Workflow and process automation, accounting teams gain the tools to automate a large amount of this process and the visibility into where the work is at any stage in the flow. With a strong software solution this will include notifications to keep the involved parties informed that there is work to be done or that a particular document requires attention. Once in the system, pre-established routing can take place for approvals, matching, and verification. This can happen if a vendor sends an invoice with the incorrect amount or if fraudsters target your company with an elaborate billing scheme. The last thing you want is to pay an inaccurate or fraudulent invoice. Difference Between Two Way And Three Way Match Invoice.The Difference Between 2 Way And 3 Way Matching. ![]()
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