![]() ![]() ![]() That is time-consuming and could take considerable effort from the AP(Accounts Payable) team. That means you must document all approvals logs for audit purposes. Suppose your purchasing policy mentions that the respective stakeholders must work on all invoice approval exceptions. Here compliance refers to ensuring that the invoice approval meets the purchasing policy standards for approval. That is why you should look at implementing an automated 3-way match process to further reduce the invoice processing cycle time. That takes time and could be a considerable time suck if you have many invoices to process. Though a 3-way match reduces the overall cycle time, you still need to match the invoice with other documents. That reduces the time it takes to process invoices because fewer invoices need approval. With a 3-way match process, you only send those invoices for approval that the system couldn’t match with a purchase order and receipt. This approach requires multiple follow up with stakeholders and resending the emails for approval. It is a considerable effort if you are currently entering every invoice approved by the appropriate stakeholder into your accounting system. When implementing a 3-way match process, you should look at the complete AP automation process. If you have paper invoices, then those need to be scanned, which is time-consuming. If you have a manual AP process, the AP team first needs to download the invoice from the email attachment. Most companies that don’t have a 3-way match process need all invoices to be approved. Benefits of a three-way match processĪ three-way match process has the following benefits: Reduce the time it takes to process invoices A two-way match process is more appropriate if you are purchasing services. The three-way match process works best for material purchases. If the order contact receives an invoice and the invoice amount matches the purchase order amount, there is no need to approve the invoice manually.Ī manual review is required if the invoice document doesn’t match the other two documents.īy enabling the three-way match, you are reducing the manual approvals required for invoices. The process of the three-way match reduces the time it takes otherwise to approve an invoice. The three documents in a three-way match process are as follows: A three-way match is a process of matching three documents to ensure that you pay an invoice that matches what you ordered. ![]()
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