Making the switch to an automated AP system can reduce the amount of paper you need to deal with daily. They may be routed to the wrong individual, where they can remain for days or weeks at a time. In some cases, the invoice may have been received but lost in-house, while in other cases the invoice may never have been sent in the first place. Any variation should be flagged and the vendor or supplier contacted for verification.

https://quick-bookkeeping.net/ the statement date to the dates of the invoices in your accounting system. Subtract any invoices you have on record that were issued after your vendor’s statement date from the total amount you show as due in your accounting system. Add any payments you made after the statement date or that likely wouldn’t have reached your vendor to the total amount shown as due in your accounting system. The amount due per your records should now match the amount due on your vendor’s statement.

Automate Where Possible

When the invoice arrives, your accounts payable clerk will compare the purchase order to the invoice. With ReconArt the accounting departments streamline the supplier statement reconciliation process within a unified digital environment waiving manual spreadsheet manipulation. ReconArt is flexible and versatile and adapts to any business process logic, however complex. In a similar situation an invoice could be posted in the accounting records of the Supplier but not the Buyer. An invoice issued by the Supplier at the end of the period and instantly included in the supplier statement might fall short of processing time to appear on Buyer’s side in the AP ledger.

Free ToolsHow To Reconcile Supplier Invoices Generator Easy-to-use generate invoices through this free tool. Comparison Get to know the difference between two estimating & invoicing software. Alternatives Know which is the best software in the estimating & invoicing industry. Get Paid FasterInvoice Create and send invoices like never before.

How to Reconcile Credit Cards in QuickBooks

Understanding what your business wants to achieve will help you determine what you need to establish during the reconciliation process. For example, if your goal is to improve supplier relationships, you’ll need to focus on communication and collaboration. You know what a payment is and track its source with digital audit trails. Also, it doesn’t stop with spotting the difference of why an entry is absent in one of the records. They must also dive into that and research if it’s a human error or if the payment didn’t get through. Vendor statement reconciliation must happen as frequently as possible.