Hi all. I have a question about 2-way vs 3-way Procurement match. I’m trying to accomplish a reconciliation of our vendor invoices and determine the best way forward for us. We have large PO’s that are often not fully filled for a long period of time (sometimes over 6 months). We receive the items we purchase in containers from China. These deliveries usually have items from multiple PO’s in them. I have been able to do a 2-way reconciliation via SuiteScript by uploading the factory invoices (into a custom record) after we receive and enter the container. We use RF-Smart, so we always receive our items against a PO. If there is an unknown item, or item with a quantity greater than expected, we will update the appropriate PO in order to receive it. The reconciliation simply compares the items, quantities and prices on the factory invoice against the line items on the Bill that was created by including the PO’s on the invoice. From my techie, non-accounting background this seems to be a legitimate process, though I’m getting questioned from someone in my finance dept. They insist that only a 3-way match is legit. From what I understand, a 3-way match uses the PO, item receipt and Invoice data to triangulate and match out. I get that, but my question is, In NetSuite, what or where exactly is the receiving record? Since we are receiving items by applying them directly to PO’s, I think it’s actually the PO that also doubles as the “item receipt” record. Thus a 2 way match as I described above it really a “hybrid” 3-way match. But then again, I’m just a programmer, so I really don’t know. Any thoughts or incite would be greatly appreciated!

Hi JR, If you are doing a 2 way match then you are just matching that the quantity and amounts are the same on the PO and the Bill. It is ignoring what has been received. If you introduce the Item Receipt record into the matching then you are checking that the actual quantity received is the same the same as the bill. Finance are probably asking as this will give them more certainty that the goods have arrived and they can process the bill for payment. The item receipt record is separate to the PO and can be found under the related records subtab on the PO. Steve