The vendor sends a Purchase Order invoice either along with product reception, or after product reception. Recoding the vendor invoice to reflect the company's liabilities to the vendor results in an increase in the open vendor balance. Microsoft Dynamics 365 for Finance and Operations supports the company's internal control of vendor invoices by matching the invoice with the Purchase Order and the invoice amount.
It can be either three-way matching or two-way matching. A three-way match is for a product purchases when comparing the Purchase Order quantity against the quantities in the vendor invoice. And comparing the purchase prince in the purchase order against the invoice amount. A two-way match is for services when comparing ...
