We live in the age of information and connectivity. Business cannot strive without interconnectivity across all departments. Information has to be linked, so everyone has relevant information in front of him or her, when they need it.
Purchasing, in particular, has room for many errors.
Three-way matching in Sage ERP X3 processes your purchasing information, lessening the chances for errors.
The three-way match refers to the “best practice” accounting procedure used when processing an invoice received from a supplier. The purpose of the three-way match is to avoid paying incorrect, or perhaps fraudulent invoices, while avoiding roadblocks in the process.
Three-way refers to the three documents involved (and managed by different people):
- Supplier’s invoice, which was received and becomes part of an account payable if approved
- Purchase order
Match refers to the comparison of the quantities, price per unit, terms, etc., appearing on the supplier’s invoice to the information on the purchase order and to the quantities actually received. After the vendor’s invoice has been validated by the three-way match, it can be further processed for payment.
This new feature provides controls to assist in the three-way matching process by ensuring that exceptions are prevented and that they are clearly communicated to the user. It is based on “tolerance codes” providing the relevant rules according the following questions:
- Do you want to use the tolerance matching logic?
- What types of tolerance checks are used?
- How many codes are required and what are the thresholds?
- At what level (supplier, product, supplier-product) are the tolerance codes to be assigned?
- For each tolerance, what is the desired “action”?
- Do you allow the tolerance code to be edited on the PO?
- What users are authorized to “Unblock” an invoice?
- Do you use to force invoice loading from receipts?
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