Two, Three, and Four Way Matching

What is Matching?

Matching is a process performed for goods and services ordered through a purchase order that takes place during the online invoice approval process. Invoices are matched to purchase orders (2 way matching), receiving information (3 way matching), and inspection information (4 way matching) as applicable. The invoices must meet matching tolerances or a hold is placed on the invoice and payment cannot be made until the hold is resolved or manually released. Refer to "Tolerances" and "Invoice Holds" for more information.

The default setting for all invoices is 2 way matching, if 3 or 4 way matching is required it must be set on each purchase order when it is created.

2 Way Matching Process

In the 2 way matching process quantity and amount on the invoice are matched to the quantity and amount on the corresponding purchase order. The following table outlines the 2 way matching process:


Step	Action
1	An invoice is received from a supplier (vendor) for payment of goods or services ordered through a purchase order.
2	An invoice is created in the accounts payable module and matched to a purchase order.
3	During the online invoice approval process, the invoice quantity and amount is matched to the purchase order to ensure that tolerances are met.
4	If tolerances are . . .	Then
	met and	no holds are placed on the invoice and the invoice is approved for payment.
	not met	a hold is placed on the invoice. See step 5.
5	The reason for hold must be resolved or a manual release of the hold must be processed.
6	Once the hold is resolved or released, the invoice approval process must be repeated and if all tolerances are met, the invoice is approved for payment.

3 Way Matching Process

The 3 way matching process is used when an operating location is using online receiving. In 3 way matching an invoice is matched to the corresponding purchase order for quantity and amount and to receiving information. The following table outlines the 3 way matching process:


Step	Action
1	Goods or services ordered through a purchase order are received by central receiving or the appropriate operating location department.
2	A query is performed in the purchasing module, receiving form (transaction screen) to find the appropriate purchase order.
3	Data is entered and saved into the Oracle receiving form (transaction screen) including quantity received.
4	Delivery of goods is recorded in Oracle and then manually performed for receipt by end user (this would be done if using central receiving).
5	An invoice is created in the accounts payable module and matched to the purchase order created in the purchasing module.
6	During the online invoice approval process, the invoice quantity and amount is matched to the purchase order and receiving information to ensure that tolerances are met.
7	If tolerances are . . .	Then
	met and	no holds are placed on the invoice and the invoice is approved for payment.
	not met	a hold is placed on the invoice. See step 8.
8	The reason for hold must be resolved or a manual release of the hold must be processed.
9	Once the hold is resolved or released, the invoice approval process must be repeated and if all tolerances are met, the invoice is approved for payment.

4 Way Matching Process

The 4 way matching process is used when an operating location is using online receiving and inspection. In 4 way matching an invoice is matched to the corresponding purchase order for quantity and amount, receiving, and inspection information. The following table outlines the 4 way matching process:


Step	Action
1	Goods or services ordered through a purchase order are received by central receiving or the appropriate operating location department.
2	A query is performed in the purchasing module, receiving form (transaction screen) to find the appropriate purchase order.
3	Data is entered and saved into the Oracle receiving form (transaction screen) including quantity received.
4	Inspection information such as quantity accepted or rejected is recorded into the Oracle inspection form.
5	Delivery of goods is recorded in Oracle and then manually performed for receipt by end user (this would be done if using central receiving).
6	An invoice is created in the accounts payable module and matched to the purchase order created in the purchasing module.
7	During the online approval invoice process, the invoice quantity and amount is matched to the purchase order and receiving and inspection information to ensure that tolerances are met.
8	If tolerances are . . .	Then
	met and	no holds are placed on the invoice and the invoice is approved for payment.
	not met	a hold is placed on the invoice. See step 9.
9	The reason for hold must be resolved or a manual release of the hold must be processed.
10	Once the hold is resolved or released, the invoice approval process must be repeated and if all tolerances are met, the invoice is approved for payment.

Feedback
Was this document clear and easy to follow? Please send your feedback to webfeedback@rfsuny.org.