Skip to content
Wikiaccounting
  • Small Business Tools
    • Accounting Software
    • QuickBooks
  • Audit
    • Audit Approaches
    • Assertions
    • Audit Committee
    • Audit Opinion
    • Audit Plan
    • Audit Procedures
    • Financial Statements
    • Audit Risks
    • Internal Audit
    • Audit Sampling
  • Financial Accounting
    • Account Receivable
    • Account Payable
    • Fixed Assets
    • Bank reconciliation
    • Factoring Account Receivable
    • Financial Planning
    • Forensic Accounting
    • Financial Ratios
      • Assets Turnover Ratio
    • Accounting Principle
    • Accounting Documents
    • Financial Statements
      • Balance Sheet
      • Current Assets
      • Equity
Search
  • Small Business Tools
    • Accounting Software
    • QuickBooks
  • Audit
    • Audit Approaches
    • Assertions
    • Audit Committee
    • Audit Opinion
    • Audit Plan
    • Audit Procedures
    • Financial Statements
    • Audit Risks
    • Internal Audit
    • Audit Sampling
  • Financial Accounting
    • Account Receivable
    • Account Payable
    • Fixed Assets
    • Bank reconciliation
    • Factoring Account Receivable
    • Financial Planning
    • Forensic Accounting
    • Financial Ratios
      • Assets Turnover Ratio
    • Accounting Principle
    • Accounting Documents
    • Financial Statements
      • Balance Sheet
      • Current Assets
      • Equity
Wikiaccounting
Search
  • Small Business Tools
    • Accounting Software
    • QuickBooks
  • Audit
    • Audit Approaches
    • Assertions
    • Audit Committee
    • Audit Opinion
    • Audit Plan
    • Audit Procedures
    • Financial Statements
    • Audit Risks
    • Internal Audit
    • Audit Sampling
  • Financial Accounting
    • Account Receivable
    • Account Payable
    • Fixed Assets
    • Bank reconciliation
    • Factoring Account Receivable
    • Financial Planning
    • Forensic Accounting
    • Financial Ratios
      • Assets Turnover Ratio
    • Accounting Principle
    • Accounting Documents
    • Financial Statements
      • Balance Sheet
      • Current Assets
      • Equity

What Are the Three Ways of Matching? (Explained with Example)

Account Payable

Three ways matching is the control that put in the accounting department especially in payment function to ovoid overpayment to suppliers.

That is the main purpose of this internal control function. There are three main documents and functions involved. First is the purchase order, second is the invoice, and the last one is goods received noted.

How does this process work?

Before we talk about how the process work, let talk about the process of the purchase order, invoice and goods received the note.

The purchase order is what our company order goods from suppliers. That probably after comparing all quotations and gone through the final price negotiation. The items in the purchase order are what we expected to receive from suppliers.

Nothing else. Goods received noted is the noted that list down all items that we received from the purchase order we made.

And the invoice is what our suppliers billed to us as the result of delivering goods.

The process of three ways matching is done at the payment times and this is to make sure that we pay for goods we order with the amount received.

And these three documents must be matched together before payment released. It starts from matching the goods received noted to purchase order. This is to ensure that what suppliers delivered, and what received are what we order.

If it is different, we must investigate. One we are okay with that, the next step is to check whether what the suppliers billed is only for what we received.

Related article  Accounting for Interest Payable: Definition, Journal Entries, Example, and More

As experiences, we might reject part of the suppliers’ delivery if the quality or other mater found.

So, while all three documents are matched, the payment process could be made.

Sinra

Post navigation
← Previous Post
Next Post →

Related Posts

Accounts Payable: Definition | Recognition, and Measurement | Recording | Example

Account Payable

4 Best Account Payable Books of All Time – Recommended

Account Payable, Books, Managerial Accounting

Accounting for Interest Payable: Definition, Journal Entries, Example, and More

Account Payable

Is Interest Payable a Current Liability? (Explanation, Example, and Entries)

Account Payable

Trending

  • Top 8 Accounting Software Using In Cambodia in 2023
  • Ultimate Guide to Request Your W2 Form: Everything You Need To Know!
  • List of Allowances You Could Claim on Form W-4 (The Completed Guidance)
  • What Is The Condensed Financial Statement?
  • Transferable Letter of Credit – Definition, Key Feature, and More
  • HOME
  • ABOUT US
  • POLICIES AND DISCLAIMER
  • CONTACT US
  • ADVERTISE

Copyright © 2023 Wikiaccounting