Invoice types in R12

Invoice:- 

        A document that will convey how much the customer has to pay for the goods &                                      services he has bought and the due date for paying the amount.

Invoice Match Option -

              a) 2-way

              b) 3-way, 

              c) 4-way

In a 2-way match, you will compare 3 documents i.e. PO with Invoice

Ex: Suppose we had given PO for 100 items for that we will receive the invoice for 100 items. So that we will make a payment for that 100 items.

In a 3-way match, you will compare 3 documents i.e. PO with a receipt with Invoice.
Ex: Suppose we have ordered 100 items in PO. But we had received only 75 items, But we had received an invoice for 100 items. so, we will make payment for only 75 items.

In 4 ways you will compare 4 documents i.e. PO with Receipt with Invoice with Inspection.
Ex: Suppose we have 100 items in PO. Suppliers send us 75 items.  We will do an inspection on those items whatever we have received. If 15 items got damaged. Finally, we are going to make payment to the 60 items only.