Final answer:
The Three Way Match is a process in accounting that involves matching a purchase order, receiving report, and supplier invoice to ensure accuracy in goods received and invoiced.
Step-by-step explanation:
The Three Way Match is a process used in accounting for settling receipts. It involves matching three key documents - the purchase order, the receiving report, and the supplier invoice - to ensure that they all correspond to each other. When these three documents match, it verifies that the goods or services were received as ordered and that the invoice amount is correct.
For example, let's say a company places an order for 100 units of a certain product. The Three Way Match process ensures that when the goods are delivered, the receiving report confirms that 100 units were received. Then, when the supplier sends an invoice, it is checked to ensure that the quantity and price match what was initially ordered and received.