What is 3-way Invoice Matching?
The process of 3-way invoice matching is simply matching information in a purchase order (PO) with the a goods received note (GRN) and an invoice. Done manually, it’s quite a lengthy process. That’s why many businesses choose to automate 3-way invoice matching. This greatly reduces administration time in accounts payable, and provides valuable insights into supplier delivery and pricing compliance.
Why Should You Use It?
3-way invoice matching identifies and highlights any differences among the three sources of information. This lets you manage invoices by exception, rather than reviewing each individual line item.
Typically, the accounts payable team only really gets involved if there are discrepancies, such as a supplier charging a higher price for goods than agreed, or charging for goods that the vendor didn’t deliver. With this process, accounts payable teams spend less time going through POs, GRNs and invoices. Instead, they can focus their time on those that don’t match up.
Organizations get better insight into the performance of their suppliers with a 3-way matching process. It also lets them manage any discrepancies more quickly.
When automated, this service provides a seamless management of purchases and invoices. This removes all the usual manual steps between ordering and payment of goods purchased. Of course, it saves a lot of hours in the process. Suppliers and customers both benefit. With the right tools in place, you can even set up automatic credit notes. These notes send automatically if the vendor overcharges you, saving you a step.
There are other benefits, too. For example, you improve your customer-supplier relationship by increasing the speed in your invoice payments. And, you gain better visibility into who your best suppliers are. (They’re typically the ones who deliver what you actually order and who invoice the right amount.)
Get Started with 3-way Invoice Matching.
At Fourth, we know the importance of automating this process. We set up a unique solution which integrates seamlessly with our inventory management software. It updates in real-time so you’re always prepared. Our solution can also adopt many suppliers into a 3-way matching process, even if they are not capable of submitting typical electronic documents.
If you want to find out how you can get automated 3-way invoice matching for your hospitality business, get in touch with us here.
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