A three-way match is an essential internal control process in
Accounts Payable (AP) used to verify and approve vendor invoices before processing payments. It ensures that the details on three critical documents match to prevent errors, fraud, and overpayments.
The Three Documents Involved :
Purchase Order (PO) :
* Issued by the buyer to the vendor.
* Includes details such as quantity, price, and terms of purchase.
Goods Receipt Note (GRN) :
* Confirms that the goods/services were received in the correct quantity and quality.
* Acts as proof of delivery.
Vendor Invoice :
* A bill sent by the vendor requesting payment for the goods/services provided.
* Lists the item details, amounts, and payment terms.
