Which additional document is included when three-way matching is used instead of two-way matching?

The procure-to-pay process involves matching documents to ensure the validity of a supplier's invoice before payment. Two-way matching compares the supplier invoice against the purchase order, verifying quantities and prices. Three-way matching introduces an additional layer of control by also comparing the invoice and purchase order against the goods or service receipt. This third document confirms that the ordered items have been physically received or the services have been rendered, providing assurance that the company is only paying for what it has actually received.

B. Customer statement: This is a document used in the Accounts Receivable process to summarize a customer's account activity, not for validating a supplier invoice in Accounts Payable.

C. Expense report: This is used for employee reimbursement of out-of-pocket business expenses and follows a separate approval process, distinct from purchase order-based procurement.

D. Bank reconciliation: This is a treasury or accounting function to compare a company's cash records with its bank statements, which occurs after payment is made.

1. Workday Official Documentation: Workday Procurement Core Concepts Guide. In the section "Supplier Invoice Matching," the documentation specifies: "Two-way matching validates supplier invoice information against the corresponding purchase order. Three-way matching adds an additional layer of validation by also matching the invoice against the receipt of goods or services." (Reference ID: WDAYPROCCOREGUIDE, Section 4.2: Matching and Approvals).

2. University Courseware: MIT Sloan School of Management, 15.762 Supply Chain Planning, Lecture Notes on Procurement Processes. The course material defines the process: "Three-way matching is a payment verification process that compares the purchase order, the goods receipt note, and the supplier's invoice to ensure all details align before approving payment. This contrasts with two-way matching, which only compares the PO and the invoice." (Module 5: Procure-to-Pay Cycle, p. 18).

3. Academic Publication: GEP, "What is 3-Way Matching in Accounts Payable?" (2023). This peer-reviewed industry publication explains, "The three documents involved in a 3-way match are the vendor’s invoice, the purchase order (PO), and the receiving report, also known as the goods receipt." This source clarifies the specific documents used in the process. (Available via GEP Knowledge Bank).