3- Way Matching

What is the 3 way matching feature and how can I use it ?

Before learning about 3 way matching, please note that it is a Buyer specific feature and a supplier can not use this feature.

3 Way Matching is a special feature that integrates the results from 3 modules that are -

  1. Purchase Order

  2. Invoice

  3. GRN

This feature makes the process of verifying the products ordered, billed and received thus making the process extremely easy and transparent to the Buyer.

3-way matching is done when a buyer submits a Purchase Order to the supplier. The supplier accepts that Purchase Order and creates an invoice for that PO containing all the required line items. After the order has been received, the buyer inspects the supplied goods and raises a GRN.

3-way matching enables the buyer to check the PO, Invoice and GRN stats at a glance.

Now assuming there’s a PO whose invoice has been created and GRN has been raised, here’s how a user can use 3-way -

  1. First, the user needs to ensure that there is a PO for which invoice has been created and submitted, also a GRN has been raised.

  2. Now, go to the invoice module and find that invoice.

  3. Click on the invoice number and open that invoice, now on the extreme right find the 3 dot icon.

  4. Hover the mouse over the 3 dot icon, a drop down will open. Click on 3 way matching.

  5. After that the 3 way screen will open and the invoice number will be displayed on top.

  6. Before proceeding further, here is what the user will be able to match.

  7. The table will display the line item data and its values in the PO and the invoice. Values are shown in the columns, for EG : PO rate, Invoice rate, PO Qty, Billed Qty, PO HSN, Invoice HSN, etc.

  8. The values that will mismatch in the PO and invoice will be displayed with red rectangles and those that match with green rectangles.

  9. These visuals will instantly inform if there were changes in the line items data in the invoice compared to what was given in the PO.

  10. Next thing is the PO , GRN and Invoice summary at the bottom of the screen. Here users can instantly get to see what was the PO amount, Invoice amount and GRN amount.

Q. How are these summary amounts calculated ?

  1. PO Amount - This amount is the total of the gross amount of the line items in the PO as given by the buyer.

  2. Invoice amount - This amount consists of the gross amount of line items based on the values that supplier has given in line items, these can be unchanged or changed. This gross amount is further adjusted with discounts, TDS, TCS, Freight Insurance etc (if applied by the supplier) in the field of Additional Charges. However, the Additional charges will always be 0 in GRN and PO.

  3. GRN Amount - This amount is based on the GRN submitted by the buyer depending on the goods / services he has received.

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