2-WAY MATCHING
Financial Dictionary — Procurement & AP Controls
Definition
is the comparison of relevant voucher to purchase order.
Detailed Explanation
Two-way matching is a purchasing control that compares the supplier invoice (voucher) with the purchase order (PO) to confirm price and quantities before payment.
Common Uses
- Used in the purchase-to-pay cycle to validate invoices, approvals, and supporting documents.
- Used to strengthen internal controls over purchasing and supplier payments.
- Used to strengthen internal controls over purchasing and supplier payments.
Practical Example
- Example: Before payment, the AP team applies **2-WAY MATCHING** to confirm the invoice matches the approved purchase documentation.
Why This Term Matters
- Why it matters: Prevents incorrect/duplicate payments, reduces fraud risk, and improves accuracy of payables and expenses.