Three-Way Matching

In Accounts Payable, three-way matching refers to the process of matching an invoice line to a purchase order receipt line.  Because a receipt line is tied to a purchase order line, the end result is a match between three lines on three separate documents (invoice, purchase order, and purchase order receipt).  Matching is performed either manually or automatically through the invoice entry and maintenance conversations in Accounts Payable. 

You can define whether automatic matching is used for each company/location on Reference File category D39 (A/P Match Information).  If category D39 is not defined for a company/location, a manual matching environment is defaulted.  During automatic matching, the system will match an invoice line to a receipt line only if the differences between their quantities and amounts are less than the tolerances defined for the company/location on category D39. 

For each invoice/receipt match made, a quantity tolerance percentage and an amount tolerance percentage are calculated.  The tolerance percentages for a match are calculated as follows:

Related

• Setting Up Your Matching Environment
• Accrual and Matching in a Management Accounting Environment
• Manual Matching
• Automatic Matching
• Matching Reports