Any accounts payable professional will tell you how important three-way matching is to a business. Without it, careless losses, reimbursements for unauthorized purchases, and fraud can run rampant. But exactly what is three-way matching, and why has it become such a time consuming piece of the accounts payable process?
Invoice Matching Workflow: How it Works
Three-way matching is a standard payment verification technique used by accounts payable departments. This process ensures everything arrives in the correct quantity and at the right price. There are three components involved in the process: an invoice, purchase order, and receipt of goods.
Manual invoice matching is a slow, time-consuming and labor-intensive process. It can be hard to accumulate all the information needed for payment, which often results in delayed payments and upset vendors. One way that AP departments can reduce invoice processing times by 70% is with invoice matching software. This will automatically route matched invoices to the company’s ERP or AP system, thereby eliminating the need for processor involvement.
Automated Invoice Matching – The Benefits
Are your employees spending too much time coding, approving, and mailing invoices from various remote locations to the home office? If your business isn’t operating as efficiently as possible because the staff is stuck behind a computer doing paperwork instead of focusing on generating revenue, we can help.
Automated three-way matching will have an immediate and significant positive impact on your business by:
- Matching invoices automatically, without human intervention
- Speeding the invoice processing cycle by flagging exceptions
- Dramatically reducing admin and processing costs
- Tightening up controls with a full audit trail
- Ensuring data accuracy