Answer / siraj ahmad

there are 2 ways,3 ways and 4 ways matching for PO.
In 2-way: what ever you have ordered for the PO you will
make the payment for the suppliers in 2- way i.e we will
compare two documents PO and Invoice.
2-way matching verifies that Purchase order and invoice
information match within your tolerances:
Quantity billed <= Quantity Ordered
Invoice price <= Purchase order price
Eg:Suppose we Had given PO for 100 items ,for that we will
receive invoice for 100 items. so that we will make payment
for that 100 items.

In 3-Way you will compare 3 documents i.e
PO+reciept+Invoice.
3-way matching verifies that the receipt and invoice
information match with the quantity tolerances defined:
Quantity billed <= Quantity received.
Eg:Suppose we have ordered 100 items in PO. But we had
received only 75 items ,But we had received invoice for 100
items. so, we will make payment for only 75 items.

In 4-Way you will compare 4 documents i.e
PO+Receipt+Invoice+Inspection.
4-way matching verifies that acceptance documents and
invoice information match within the quantity tolerances
defined:
Quantity billed <= Quantity accepted.
Eg:Suppose we have 100 items in PO. Suppers send us 75
items We will do inspection on those items what ever we
have received, If 15items got damaged. finally, we are
going to make payment to the 60 items only.

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