Are 3-way Matches Enough to Prevent Fraud?

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The 3-way match is an important baseline control process, but it can’t be relied upon exclusively to prevent fraud, errors and overpayments. In complex P2P environments, where data is processed in multiple formats, it’s increasingly easy to circumvent 3-way match controls, intentionally or not.

In a recent blog, David Griffiths, CEO at FISCAL Technologies, explores 8 reasons why organizations shouldn’t just rely on 3-way matching. Here are a few highlights:

1. Retrospective POs. Purchase Orders created and entered after the goods are received avoids the logic behind the 3-way match process, potentially leading to error or abuse of the system and exposing organizations to fraud.
2. Open POs. If a PO remains open – for instance for multiple shipments/repeat purchases paid automatically until the invoice limit is reached – this increases the risk of overpayments.
3. Frequent exceptions. Time-consuming and complex exceptions can tempt employees to process them without resolving or fully investigating the problem, particularly if these exceptions could impact KPIs or early payment discounts.

Organizations can bolster their 3-way match process with robust internal processes and some are deploying forensic technology systems.

Visit the full blog and  FISCAL Technologies’ AP Forensics solutions page to learn about how the solution automatically analyses P2P for overpayments, duplicates, supplier fraud, and more.