Which method is the best way to determine when to pay suppliers for a purchase?

The best method to determine when to pay suppliers for a purchase is through a three-way match of critical information found on the purchase order, packing slip, and invoice. This approach ensures that all relevant documents align, providing a comprehensive verification that the purchases made, the goods received, and the payments requested are consistent with one another.

The three-way match serves as a crucial internal control mechanism that helps prevent errors and fraudulent transactions. By matching these three documents, the organization can verify that the supplier has delivered the correct items in the specified quantities and that the invoiced amounts are accurate. This not only facilitates timely payments to suppliers but also reinforces accountability within procurement processes.

Options like a performance report from the engineering department or an updated report from the expediters office do not directly address the validation of financial transactions concerning payments. They may offer insights into project progress or procurement efficiencies but lack the detailed and specific checks needed for ensuring accurate payment processing. Additionally, while a comparison of the purchase order and the supplier's invoice is a useful step, it does not account for confirming that the goods were actually received, which is critical for validating the payment request completely.

In summary, the three-way match method is the most thorough and reliable way to ensure that payments to suppliers are