The SAP is a German software company whose tools allow the organizations to keep a check on all the business and customer interactions. The SAP is currently the fourth largest company in the world and the SAP ERP system provides various data management solutions which make all the business procedures easy for the organization. This company was founded in 1972 in order to help the customers to gain an interface where they could easily communicate to the various sectors of the organization. Recently, this system was modified and now it not only accelerates customer satisfaction but also maintains the homogeneity of the entire workforce.
Currently, there is a huge demand for SAP and the majority of the graduating students of Science and Commerce are keen on getting a professional degree in SAP which can help them establish their career. The average course fee may cost you up to 3.5 lakhs rupees and can the course may last from 8 to 12 weeks. You can find out all the details of this course along with the eligibility criteria on STechies.com.
Now, let us get a little overview of SAP and the three-way functionality which can help you to make common purchases such as buying direct materials for your business purpose from different industries as required.
What is the three-way matching?
The three-way matching is a procedure by following which you can process a vendor invoice which will ensure that the entire payment process is complete and is done accurately. The major aim of the three-way matching is to highlight all those discrepancies which are present in any of the three-level if any. The three levels are- Purchase Orders (PO), Invoice Receipts (IR) and Order Receipts (OR). There are three documents of prime importance in the purchasing process which can help the business from paying or overspending over an item which they ultimately did not receive.
The Overview of SAP Three-way match:
- The Quantity and Price of a commodity are matched in three levels which are PO, IR, and OR and the intercorrelation of the levels are calculated.
- If there is an availability of multiple line items at PO then a three-way match can be achieved in each line item. The basic step of an SAP three-way match is always based on the PO Line item.
- The major protagonist of the entire three-way system of SAP is the buyer. The buyer will first ensure if there is a three-way match available in the system. If he finds any discrepancy, then he can resolve it by correcting the PO, IR, and OR.
- The SAP also provides MRBR reports and configuration analysis so that the three-way match functionality during the entire Business transactions is correctly achieved.
How SAP does the 3-way Matching process?
The 3-way match process of SAP is completely automated. You do not need any extra application or a manual to undergo this process. You can follow the following path to configure for a three-way match:
SPRO -> Materials Management -> Logistics Invoice Verification -> Invoice Block -> Set Tolerance Limits