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What is the difference between a two-column and a running reconciliation? Why are regular reconciliations important for fraud prevention? What is the frequency at which key reconciliations should be performed? What are reconciling items and how are they classified? What is the GR/IR reconciliation and why does it matter? How do you reconcile intercompany AP/AR balances? How does automation (reconciliation software) improve the process? How do you reconcile accounts receivable to revenue? What is a three-way reconciliation (e.g., for trust/client accounts)? What makes a reconciliation 'review-ready' for audit?
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Accounts Payable & Receivable › Reconciliations

How do you reconcile a supplier statement to the AP ledger?

Intermediate

Answer

Compare the supplier's statement (what they say you owe) to your AP ledger for that vendor, line by line. Identify missing invoices to post, credits not yet applied, duplicate entries, disputed items, and timing differences (in-transit payments). Resolve each so the balances agree, preventing missed liabilities or over/underpayment.
Statement 52,000 vs ledger 48,500. Difference 3,500:
  +2,000 invoice not yet received, +2,000 invoice in dispute,
  -500 credit not on statement.
Real-world example A supplier statement reconciliation uncovers a $2,000 invoice never received and a missed $500 credit before payment.

Common follow-ups: What items commonly reconcile a supplier statement? | Why reconcile before paying?

Vendor Management Invoice Processing Reconciliations
All 23 Reconciliations questions