In your evaluation of two- and three-way matching, you’ll want to be aware of this big difference. You’ll find 3-way also better protects your business against overpaying, making duplicate payments or fulfilling fraudulent invoices.
If invoices and receipts are error-prone or frequently inaccurate, then they may lose trust and consider taking their business elsewhere. Suppliers and vendors place significant importance on verified data. However, 3-way matching is more likely to find more mistakes because you’re checking three documents instead of two.ĪvidXchange finds many business owners use 3-way matching to improve supplier relationships, boost profits and prepare finance for audits. With 2-way matching, it takes less time to cross-check two documents instead of three. You’ll find benefits and drawbacks of both types of matching. A 3-way matching system goes one step further and makes certain the data on the purchase order, invoice and sales receipt are the same. 3-way matching: What is the difference?Ī 2-way matching system makes sure all data on the purchase order and invoice aligns. Read more: How to Solve the Headache of Manually Matching Invoices to Purchase Orders 2-way vs. Or the business can use AP software, which gets this done automatically using a lot less paper. Something needs fixing.Ī business can have a person do this manually using paper. Mismatching means something’s off such as the amount of the purchase order doesn’t equal the invoice amount. Matching matters because it ensures you pay for what you bought.
It’s when you check an invoice to make sure the information aligns with the information on your purchase order or sales receipt. Matching in finance is very much what it sounds like. We’re going to help answer these questions for you. What’s the difference between the two? How does matching help businesses save time, reduce mistakes and grow faster? In the finance world, there tends to be some confusion and questions surrounding 2-way vs.