Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

Invoice matching

The vendor invoice matching process is a control point that is concerned with the invoices received from the vendors before recording the invoice as a liability on the company. There are two types of invoice matching, and they are as follows:

• Three-way matching: This is normally used with inventory items, where three documents are compared: the vendor invoice against the purchase order document and the product receipt document.
• Two-way matching: This is normally used with service items, where two documents are compared: the vendor invoice against the purchase order. This requires manual approval to pass these transactions.

The following diagram illustrates vendor invoice matching:

The basic document in three-way matching ...