All 22 Vendor Management questions
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Accounts Payable & Receivable › Vendor Management

What is a supplier statement reconciliation and why perform it?

Intermediate

Answer

It compares the supplier's statement of what they say you owe against your AP ledger for that vendor, identifying missing invoices, unapplied credits, duplicate entries, or disputed items. Doing it regularly for key suppliers prevents surprises, catches errors and missed credits, and keeps the payable accurate.
Supplier statement balance: 45,000
Our AP ledger:              41,000
Difference 4,000 = 2 invoices not yet received + 1 credit not applied.
Real-world example A statement reconciliation reveals an unrecorded $3,000 invoice and a missed $1,000 credit, correcting the balance before month-end.

Common follow-ups: What items commonly cause statement differences? | How often should key suppliers be reconciled?

Reconciliations Aging Analysis Vendor Management
All 22 Vendor Management questions