The information on these documents falls into two categories – line item data or header data. Traditionally, Accounts Payable would review the relevant information on each of the three documents. In addition to the information on a PO and GRN, an invoice will include an invoice number, vendor contact information, any credit details, total amount due, and payment schedule. When an invoice is received, it is matched against both the PO and GRN. Once the goods are received, or the service has been fulfilled, the supplier will send an invoice to the purchaser requesting payment. Typically a GRN will feature the same details as a PO with the addition of delivery details. It is always matched with the PO to ensure that everything ordered has been delivered correctly. Typically this document will include the purchasing company’s name and address, date, product/service description and quantity, price, and PO number.Ī GRN is proof that the product/service has been delivered or fulfilled. These three documents are critical to a successful 3 way match.Ī PO is a document that confirms an order from procurement to a vendor. A successful three way match involves matching data on a PO, a GRN and an invoice. The 3-way invoice matching process acts as the ‘handover’ between procurement and accounts payable. What is three-way matching in accounts payable? When the matching process is automated, as part of an end-to-end AP automation system, organizations can automatically process a high percentage of their invoices from the creation of a purchase order to the receipt of an invoice. This is reflected in Levvel Research’s Payable Survey, with 31% of respondents naming manual invoice matching among the top AP pain points. The perils of manual invoice matching are all the more apparent for accounts payable teams that have switched to working remotely. However, when done manually, the matching process is paper-based, which inevitably leads to human error and long delays. Three-way matching in accounts payable also serves as an excellent method of validating different parts of the supply chain. The process of matching invoices to purchase orders (PO) and goods received notes (GRN) has been around for years and is a method of processing a supplier invoice to the point of accurate payment. If you work in finance or accounting, you are most likely familiar with three-way invoice matching in accounts payable.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |