Three-way matching
Three-way matching helps you make sure that the variance between the price information on the purchase order and the invoice is within acceptable tolerances. It also helps you ensure that the quantity on the invoice matches the quantity on the corresponding product receipts.
The Invoice matching details page compares the same line amounts as it does for two-way matching. Additionally, the system matches the quantity on the invoice to product receipt quantities that you receive. If the invoice quantity differs from the matched product receipt quantity, a quantity matching error exists.
The Line matching policy field on the Accounts payable parameters page controls three-way matching. Depending on the selection in the Allow matching policy override field, you can select three-way matching for a specific vendor, item, or item and vendor combination on the Matching policy page and for a specific purchase order on the Purchase order page.
After you receive materials from a purchase order, you must create a product receipt. From the product receipt, the invoicing step takes place. However, human error can occur, and a discrepancy might arise from the product receipt and invoice total. If three-way matching isn't activated, the system could post the invoice with errors and affect accounting further down the line.
The following video shows an error from the Three-way matching feature and describes how to correct it when it occurs.