This process demonstrates a standard three-level comparison. This three-level comparison is carried out between the purchase order item (including order price and quantity), all goods receipts against the purchase order (quantity value), and all invoice receipts (imputed income).

The process begins with the entry of a purchase order for a material. You then receive the material, enter the incoming invoice and the payment, and issue a check. Each of these transactions refers to the initial purchase order so that throughout the entire process, you can use the purchase order history to track your progress.