Three-Way Matching
Definition
Three-way matching is comparing the purchase order, the vendor bill, and the receiving record before paying a bill. All three should agree on what was ordered, received, and billed.
Example
A purchase order says 10 items at $40 each. The receiving record shows 10 items arrived. The bill says $400. All three match, so the bill is approved for payment.
Why It Matters
Three-way matching prevents paying for items that were not ordered, not received, or billed at the wrong price.