Accounts Payable Process: Three-Way Match Explained

Accounts Payable Process: Three-Way Match answers the basic question what is the three-way match. The Three-Way Match is the foundation for the accounts payable function. Accounts payable best practices always include a three-way match. The accounts payable process, if it includes accounts payable best practices, also includes a three-way match. It is considered a strong #accountspayable internal controls and all #accounting professionals recommend it. #bestpractices The three-way match concept is an old approach used in accounts payable departments across the country, or at least those that use accounts payable best practices. It involves comparing the purchase order vs invoice and is a strong accounts payable internal control. This is episode 144 of the AP Now podcast The three-way match in accounting involved matching the invoice, purchase order and receiving documents. A good process that includes comparing the purchase order vs invoice vs receipt is how invoices get paid in most organizations. The most commonly asked question in this regard is what is a receiving document, as most are not familiar with that document as it is sometimes called a packing slip. Changing Invoice Practices Playlist    • Changing Invoice Best Practices   Learn more about AP Now at www.ap-now.com Learn the three-way match process in accounts payable to ensure accuracy in your financial operations. Understand how to prevent errors. The three-way match is the cornerstone of any efficient accounts payable process. This breakdown is designed for accounting professionals, managers, and anyone tasked with overseeing payment accuracy. We examine the standard components required for a successful match and explain the specific steps necessary to maintain control over your payables. Beyond the basics, we address common failures in AP matching. When the three-way match breaks down, it creates significant bottlenecks in invoice processing. You will learn exactly what occurs when documents do not align and how these discrepancies impact your purchase order matching procedures. Gaining a clear grasp of these mechanics is essential for anyone responsible for accounts payable management. Subscribe for weekly accounts payable breakdowns and comment below with the specific AP challenge you want me to cover next. 0:00 Understanding the Three-Way Match 0:56 Breaking Down the Three Core Documents 3:42 The Verification Process in Practice 4:54 Handling Discrepant Invoices