TABLE OF CONTENTS


What is a 3-Way Matching

Three-way matching is the process of matching the three:

  1. Purchase Order.
  2. Invoice.
  3. Inward/GRN.


The matching happens based on either of these:

  1. Quantity.
  2. Value.


The customer creates a purchase order. The supplier creates an invoice. The customer creates an inward/GRN. Now all these three documents are compared against each other to validate the accuracy of the procurement. The validation is based on either quantity or value. If the validation is successful, the 3-way match is successful. If the validation fails, it is considered a dispute. 


What is a Dispute in a 3-Way Matching

A dispute is when the PO, invoice, and inwards mismatch. The mismatch could be either based on quantity or value.


The Possible Dispute

The two possible disputes are:


  1. Quantity: The quantity mismatch between the documents.
  2. Value: The value(price) mismatch between the documents.


The Possible Dispute Resolutions

Below are the possible dispute resolutions:


  1. Send for In Progress.
  2. Reject.
  3. Account anyway.
  4. PO amend.


Send for In Progress

The below steps describe the resolution based on sending the invoice status to in progress.


  1. Login to Aerchain portal.
  2. Click the Modules icon.
  3. Click Invoices under Invoices.✔️ The invoice listing page opens.
  4. Click the invoice Code that is under dispute.
    ✔️ The invoice view page is presented.
  5. Click the Send For dropdown.
  6. Click In Progress.
  7. Click Confirm to confirm the same.
    ✔️ The invoice moves to the In Progress state.


This is not a resolution by itself, but it takes the transaction to the in-progress status. The next possible step in dispute resolution would be invoice or PO amendment or GRN adjustments as required. Once the required changes are made, the 3-way matching has to be started again.


Reject

The below steps describe the resolution based on rejecting the invoice.


  1. Login to the Aerchain portal.
  2. Click the Modules icon.
  3. Click Invoices under Invoices.✔️ The invoice listing page opens.
  4. Click the invoice Code that is in dispute.
    ✔️ The invoice view page is presented.
  5. Click the Resolve button.✔️ The Dispute Workflow Resolution popup opens.
  6. Double-click the Dispute Resolution drop-down.
  7. Choose the Reject option.
  8. Click the OK button.
    ✔️ The invoice status changes to Disputed.


Now, you can follow this article to resolve the invoice dispute.


Account Anyway

The below steps describe the resolution by accounting for it anyway.


  1. Login to Aerchain portal.
  2. Click the Modules icon.
  3. Click Invoices under Invoices.✔️ The invoice listing page opens.
  4. Click the invoice Code that is in dispute.
    ✔️ The invoice view page is presented.
  5. Click the Resolve button.✔️ The Dispute Workflow Resolution popup opens.
  6. Double-click the Dispute Resolution drop-down.
  7. Click the Account Anyway dropdown.
  8. Click the OK button.
    ✔️The invoice status changes to Accounted.

The dispute is resolved by opting for Account anyway. The invoice status changes to Accounted.


PO Amend

The below step describes the resolution based on the PO amendment.


  1. Login to Aerchain portal.
  2. Click the Modules icon.
  3. Click Invoices under Invoices.✔️ The invoice listing page opens.
  4. Click the invoice Code that is in dispute.
    ✔️ The invoice view page is presented.
  5. Click the Resolve button.✔️ The Dispute Workflow Resolution popup opens.
  6. Double-click the Dispute Resolution drop-down.
  7. Choose the PO Amend option.
  8. Click the OK button.
  9. The invoice moves to Parked status.
  10. Follow the PO amending steps.


Once the PO is amended, start the 3-way match process again and resolve the dispute is resolved.


Dispute Resolution Flowchart

The dispute and the resolution are represented in the flowchart below:



Please feel free to reach out to support@aerchain.io should you have any questions or feedback.