Spotting AP Fraud with 2-way and 3-way Matching Mechanisms
Organizations of all sizes look for a simpler way to manage orders, review purchases, and get some insight into where spending is occurring. Having a purchase order system can help deal with purchase orders and make sure appropriate payment are made and inventory stays accurate.
With hundreds and thousands of goods received each day, it is difficult for companies to keep track of all their invoices and purchase orders. A lot of conflicts will occur when working with a number of vendors and it is difficult for the Accounts Payable (AP) department to keep up. Fortunately, AP software with 2-way and 3-way matching capabilities can help overcome accounts payable challenges.
2-way and 3-way Matching Mechanisms
Companies use different matching mechanisms to ensure they receive what they order. Using a 2-way matching mechanism, you can compare the invoice received with the purchase order (PO) your company has generated. The system will check that what is shown on the invoice is what you have received. In some cases, 2-way matching does not work.
You also have 3-way matching process where the system matches PO, invoice, and (Good Receipts) GR. All the three have to match before the AP department approves payment. The automated accounts payable software can automatically route invoices to either a 2-way or 3-way matching process. This would save a lot of your AP department time and makes receiving process easy.
Accounts Payable Software
Tracking purchase orders, invoices, and receipts get harder when your business grows. In this digital world, companies that are not using automated accounts payable software are falling behind. Accounts payable software will speed up processing, save the company money, and reduce the clutter between the processes.
Also, choosing the right AP software helps enforce policies in an easy way. Automating matching processes takes the legwork out of 2-way and 3-way matching mechanism. Customized settings allow you to process different types of invoices and automatically match purchase orders with invoices and receipts. On top of all, AP software can add efficiency to purchasing, inventory count, and invoice processes.
Get a product demonstration today and find out how SutiAP Accounts Payable can help you.