Six Reasons 3-Way Matching is a Must at Your Health System
Protecting your organization from erroneous transactions and fraud
Veering from the three-way matching process by not using a purchase order (PO) puts health systems at risk of erroneous transactions and a simple way of detecting potential fraud. According to our data, health systems do NOT use a PO on an average of 69% of transactions.
What is a 3-way Match?
The three-way matching process is part of the procure to pay process (P2P) performed by the Accounts Payable (AP) department before paying invoices. AP cross-references the data in a PO, receipt records/logs, and invoice. If all data on all three documents match up, the invoice is paid.
Benefits of Using 3-Way Matching on all Transactions
Reduced Manual Data Entry Errors
It's no secret that human error exists in the form of data entry. However, the 3-way matching process helps uncover these errors before the slip of a finger costs the health systems millions.
Decreased Erroneous Transactions
Since the three-way matching process is a system of checks and balances by cross-referencing data, it should catch errors reducing the number of duplicate payments, overcharges, and other payment errors.
Increased Internal Controls
The three-way matching process is in itself a form of internal control to protect and prevent health systems from internal and external risk.
Improved Vendor Relationships
Consistent errors result in consistent disruption to health system P2P processes and vendors' workflows. Using the three-way matching process will save both sides time and energy.
Reduced Risk of Fraud
Just as the PO and the matching process are important to reducing errors, it also plays a role in reducing fraud. The matching of data will weed out fake invoices.
Creation of an Audit Trail
Keeping an audit trail is always best practice in any operation or workflow. By documenting all information needed for a three-way match, all purchases can be audited.
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