Three-way matching
Use three-way matching to help make sure that the variance between the price information on the purchase order and the invoice is within acceptable tolerances, and to make sure that the quantity on the invoice matches the quantity on the corresponding product receipts.
The same line amounts are compared on the Invoice matching details page as for two-way matching. In addition, the quantity on the invoice is matched to product receipt quantities that have been received. If the invoice quantity differs from the matched product receipt quantity, a quantity matching error exists.
Three-way matching is controlled for the legal entity by the Line matching policy field on the Accounts payable parameters page. Depending on the selection in the Allow matching policy override field, you can select three-way matching for a specific vendor, item, or item and vendor combination on the Matching policy page, and for a specific purchase order on the Purchase order page.
The video shows an example of three-way matching in action.
After materials have been received from a purchase order, you must create a Product receipt. From the Product receipt, the invoicing step will take place. However, there is a chance that human error will come into play and a discrepancy will arise from the product receipt and invoice total. If three-way matching is not activated, the invoice may be posted with errors and impact accounting further down the line. This video shows what an error from Three-way matching looks like, and how to correct it when it does show up.