![]() ![]() These few extra steps can go a long way toward catching the costly problem of invoice fraud. Three-way matching confirms that the details match each other across all three documents. The delivery receipt verifies that the delivery was made. A PO also lists the quantity of items or services to be purchased and the agreed cost. Three-way matching is an important account control that companies use to make sure invoices are paid only when they are properly validated against two other documents: their POs (issued by someone authorized to do so) and goods received notes, or receipts, that the purchase was delivered to its destination. An automated system can handle the approval process, saving AP staff time and effort left best to investigating unmatched details.Companies can set thresholds to determine which invoices require three-way matching.It reduces the chances of fraudulent invoices going undetected and, worse, being paid.Three-way matching is an AP process used to verify a supplier invoice by checking it against its corresponding purchase order and order receipt.As its name implies, three-way matching involves a third step: verification that the purchased product was actually delivered, courtesy of an order receipt or packaging slip. Two-way matching compares an invoice only to its PO. Doing this can help companies root out fake or unauthorized transactions, which can cost a company an estimated 5% of its annual revenue, according to the ACFE report. Simply put, three-way matching entails cross-referencing the invoice with its corresponding purchase order (PO) and delivery receipt to make sure all pertinent details, such as the quoted order amount and the number of items ordered, match. Three-way matching is an AP invoice process that determines whether a supplier invoice should be paid. In addition to picking up on criminal activities, three-way matching can benefit an organization in other ways, especially when the process is automated. One technique AP teams use to make sure invoices are legitimate is called three-way matching. This includes verifying that the invoices are real - small businesses experience billing fraud twice as often as their larger counterparts, according to an Association of Certified Fraud Examiners (ACFE) report - and then paying the ones that are. In the world of accounts payable (AP), one of the most challenging jobs is managing the onslaught of supplier invoices that arrive each month. East, Nordics and Other Regions (opens in new tab) ![]()
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