3 Way Matching In Accounts Payable: Optimizing Operational Performance With Accounts Payable Automation Software
3 Way Matching In Accounts Payable
Accounts payable (AP) automation provides tremendous opportunity to optimize operational performance within the financial sector. With sophisticated Softwaresolutions, companies can achieve higher levels of efficiency, accuracy, visibility, and working capital optimization. Automating the three-way matching process is key component to realizing these benefits.
Three-way matching relates to system of control that requires approvals from three separate points of interaction to ensure accuracy and authenticity in an invoice transaction for goods and services. Typically, the three points of contact consist of the purchase order, buyer?s confirmation of order fulfillment, and the invoice from the seller. By introducing software to the three-way matching process, organizations can create structured and reliable system for managing AP operations.
For finance executives seeking to invest in an accounts payable automation application, there are variety of features to consider. Reconciliation of purchase orders and receipts is an important functionality of the three-way matching process and an integrated system allows for near real-time visibility into discrepancies. Focused analytics capabilities empower executives to assess performance in the accounts payable activities. Additionally, front-end controls ensure that invoices are routed properly and approvals meet the organizations policy requirements.
Further, automated Softwaresolutions can improve the auditing of documents within the three-way matching process. OCR scanning of invoices allows for an automated review of the data and reduces manual intervention. Automated bill entry also ensures quick, accurate invoice entry into the accounts payable system. Powerful features, such as automated invoice matching, will reduce errors due to duplicate data and make evaluating differences between invoices and purchase orders simple and quick.
Incorporating accounts payable automation software into the three-way matching process can drive wide range of benefits. Companies can optimize the entire process around approvals, accuracy, speed, and visibility from order creation to entry into the finance system. As such, finance executives should take comprehensive look at the features available in potential Softwaresolutions to ensure optimal performance and regulatory compliance. By investing in reliable and scalable software, organizations can gain control and visibility of the end-to-end accounts payable process and improve operational performance.
