![]() ![]() Disputes over invoices are avoided by referencing the data on the PO and the DN. This means you always know what items are added to your supplies and when.Īs a result, businesses that use 3-way matching benefit from a high level of both efficiency and transparency. It allows you to be 100% confident of what goods you are receiving and when. Using 3-way matching for delivery of goods also acts as a control on your inventory-management systems. For example, if somebody has misclicked, you can possibly adjust the menu to make it easier for them to click on the correct item. Either way, it points to a weakness in at least one business process that you may be able to address. In short, billing anomalies indicate that there has been either a mistake or a deliberate attempt at fraud. A secondary, potentially significant, benefit is that 3-way matching can help to improve business processes. The most obvious benefit of this is that businesses can be confident that payments are correct before they make them. This is why it’s also called 3-way match control. The main benefit of 3-way matching is that it catches billing anomalies before invoices are paid. If there isn’t, there is an issue the buyer needs to address. If there is, then the buyer can be sure that they have made the correct payment for the correct goods or services. In other words, there should be a 3-way match between them. ![]() This means that the PO, the DN and the invoice should all contain the same core details. The invoice gives details of the goods or services for which the supplier is requesting payment, and also quotes the PO number. The last stage in the process is for the supplier to provide the buyer with an invoice. If the buyer has given the supplier a PO number, this is also included on the DN. It’s a list of the goods or services that the supplier has delivered or provided. In particular, it is included on both the DN and the invoice.Ī DN is sometimes called a goods-received note (GRN). This reference number stays with the order throughout its processing cycle. A PO is a list of the goods or services ordered plus a reference number. When a company makes a purchase, it creates a PO. Here is a quick guide to how it works and why it’s important. The aim of 3-way matching is to ensure that businesses pay for the goods they have actually ordered and received. Three-way matching is the process of matching a purchase order (PO) with the associated delivery note (DN) and invoice. ![]()
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