Invoicing Matching in P to P - Different Models

Invoice Matching is very important in P to P cycle (Procure to pay cycle is the other name of AP cycle). Accounting process in P to P starts with Matching.  Before process an invoice for payment, it is important to cross check whether the ordered quantity with the agreed price been received from the vendor.

The below are the different models of Matching process;

2-way matching

The process of verifying that purchase order and invoice information matches within accepted tolerance levels. Receivables uses the following criteria to verify two-way matching:
Invoice price <= Order price
Quantity billed <= Quantity ordered

3-way matching

The process of verifying that purchase order, invoice, and receiving information matches within accepted tolerance levels. Receivables uses the following criteria to verify three-way matching:
Invoice price <= Purchase Order price
Quantity billed <= Quantity ordered
Quantity billed <= Quantity received

4-way matching

The process of verifying that purchase order, invoice, and receiving information matches within accepted tolerance levels. Receivables uses the following criteria to verify four-way matching:
Invoice price <= Order price
Quantity billed <= Quantity ordered
Quantity billed <= Quantity received
Quantity billed <= Quantity accepted