Four-way matching is typically used for what type of purchases?

Four-way matching is used primarily for high-value items that require inspection. This process involves matching the purchase order, receiving report, invoice, and contract. The purpose of this rigorous matching process is to ensure that the goods or services received meet the conditions agreed upon in the purchase order and that the invoice accurately reflects what was supplied.

In cases of high-value purchases, there is often a greater risk and impact associated with errors, discrepancies, or quality issues. Therefore, it is crucial to verify that not only the correct quantity and type of goods or services were received, but also that they conform to the specific contract terms. This level of scrutiny helps organizations ensure accountability, reduce financial discrepancies, and maintain quality standards in their procurement processes.

For lower-value items or routine purchases, such as office supplies, the level of risk and the requirement for inspection is typically minimized, making a simpler matching process more appropriate. This reflects the practical nature of procurement management where resources are allocated efficiently based on the value and complexity of the purchase.