All 21 Purchase Orders & 3-Way Matching questions
More in Purchase Orders & 3-Way Matching
What is a purchase order (PO)? What is three-way matching? What is a goods receipt note (GRN)? What is a requisition and how does it relate to a PO? What information does a purchase order typically contain? What is a contract or catalog PO versus a spot PO? What is matching tolerance and why is it used? What are common causes of a three-way match failure? How are partial deliveries and partial invoices matched against a PO? What is a blanket (standing) purchase order?
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Accounts Payable & Receivable › Purchase Orders & 3-Way Matching

What is the difference between two-way, three-way, and four-way matching?

Beginner

Answer

Two-way matching compares the PO to the invoice only (used for services with no goods receipt). Three-way adds the goods receipt note. Four-way matching adds an inspection/quality certificate confirming the goods passed inspection. More match points give stronger control but require more documentation.
Real-world example Consulting fees use two-way matching, inventory uses three-way, and regulated pharmaceutical receipts use four-way with a QC inspection.

Common follow-ups: When is two-way matching appropriate? | What does the inspection step add?

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All 21 Purchase Orders & 3-Way Matching questions