SAP Financial Accounting (SAP FI) Practice Exam

What is the three-way match?

1. Matching vendor invoice with payment and purchase requisition

2. Matching purchase order with goods receipt and vendor payment

3. Matching purchase order with invoice and goods receipt

4. Matching invoice receipt with cost center allocation

The correct answer is: Matching purchase order with invoice and goods receipt

The three-way match is a crucial process in financial accounting and procurement, which ensures that the details of a purchase order, the goods received, and the invoice from the vendor all align before payment is made. This method serves to verify the accuracy of the transaction and to prevent discrepancies in the purchasing and accounting process. In this context, the correct answer involves comparing the purchase order with the corresponding invoice and the goods receipt. The purchase order outlines what was ordered, the goods receipt confirms what was actually delivered, and the invoice details what the vendor is requesting for payment. When all three documents align in terms of quantities, prices, and terms, it verifies that the business has received the correct items at the agreed-upon price, ensuring that payment is justified. Other options, while related to aspects of the procurement and payment process, do not encompass all three essential documents required for a complete verification. Matching the vendor invoice to payment and purchase requisition does not include the crucial goods receipt. Furthermore, matching the purchase order to the goods receipt and vendor payment overlooks the importance of the invoice in that confirmation process. Similarly, matching the invoice receipt with cost center allocation does not pertain to the procurement cycle but rather addresses cost accounting.