Two-way matching in accounts payable is a process that verifies the accuracy of invoices before they’re paid. With two-way matching, the AP department compares documents such as vendor invoices, purchase orders, and goods receipt notes to ensure that the goods or services were actually purchased, received, and accurately billed.
Three-way matching in AP is a more expansive verification process that includes a third document. This document is usually a request for goods or services from the requesting department. A three-way match links all three documents -- the requisition, the purchase order, and the goods receipt-- to ensure that all items in the order were properly requested, ordered, and delivered.
Four-way matching extends three-way matching by also verifying the price. A four-way account payable match ensures that the goods or services were properly requested, ordered, received, and billed at the expected cost. This ensures that there are no discrepancies in pricing.
