Vendor Reconciliation

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Vendor Reconciliation — page 1

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Vendor reconciliation — how to use
Use this workbook when your balance with a supplier or customer does not agree with theirs. Each side lists its own entries; the workbook matches them by reference and shows exactly which items explain the difference.
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Cells with this fill are inputs. Everything else is calculated.
1. Our ledger: your entries on this account for the period and your opening balance (export from your accounts payable or receivable ledger).
2. Their ledger: the other party's entries — from their statement of account, or entered by them directly when you share the workbook.
3. Match: every reference is compared automatically — matched, amount differs, only in ours, only in theirs, duplicate. For each line with a difference, choose a reason and which side will correct it.
4. Reconciliation: balance per our books, plus the reconciling items by reason, must equal the balance per their books. Unexplained difference must be 0.00. Below it, the agreed balance after both sides post their corrections.
Rules that keep the match honest
Use the same reference on both sides: the supplier's invoice number, the credit note number, and the payer's payment or remittance reference.
Both ledgers use one sign: positive balance = the customer owes the supplier. Charges increase it; payments and credits reduce it.
Reasons are entered by row on the Match sheet. If you re-sort a ledger after choosing reasons, check them again.
A payment in transit or an invoice the other side has not yet booked is a timing difference; it clears when that side posts it. A pricing difference or a duplicate needs a correcting document.
Next step
When the unexplained difference is 0.00, send the balance confirmation letter or sign the reconciliation statement with both balances and the agreed balance.