![]() ![]() Hence, only an invoice that matches the PO, goods receipt, tolerances, and the inspection slip is considered suitable for payment. Upon delivery of goods, the receiving department checks for quantity and issues an inspection slip that acknowledges that the quantity received is accurate. It necessitates matching invoices to purchase orders, receipts of goods and inspection slips as well. More complex than 2-way and 3-way matching, 4-way matching involves another step of validation. Once tolerance levels are okayed, the invoice is readied for payment. The invoice is checked for accuracy in details listed on the purchase order as well as the receipt of goods. 3 Way Matchingģ-way matching is the most popular method of invoice matching. If the invoice meets the required criteria, then it is scheduled for payment. It involves matching invoices to purchase orders as well as checking for tolerances. 2 Way MatchingĢ-way matching is a simple & common way of verifying invoices. These ways of matching also check for invoice discrepancies & tolerance levels that need to be resolved before the invoice is cleared for payment. Invoices are validated against other related document workflows that can include purchase orders, receipt of goods, and inspection slips. The invoice matching process in organizations is normally done in the following ways: 2-way matching, 3-way matching, and finally 4-way matching. Track records of payments for multiple vendorsĭifferent businesses can follow different ways of invoice matching as elaborated in the next section below.Facilitate better transparency by eliminating errors and double payments.Maintain faster and accurate releases of payments.Confirm that payments are made only for valid goods or services received from the vendor.Invoice matching ensures that vendor invoices can be verified against supporting documents before releasing payments. Let’s find out why verifying or matching invoices is so important for a business. Looking to automate your manual AP Processes? Book a 30-min live demo to see how Nanonets can help your team implement end-to-end AP automation. ![]() Invoices exceeding tolerance levels are put ‘on hold’ and sent for correction to the vendor. Tolerance level refers to minor variations that can occur in percentages or amounts in an invoice. Deviations should be assessed to see if they fall within tolerance limits to proceed with invoice processing or revert the invoice to the vendor for corrections. Identifying and reconciling deviations can be a daunting task for the AP department.
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