Accounts payable
How to reconcile supplier statements by exception
Match supplier statements to the ledger automatically and review only the items that do not agree.
Define the reconciliation population
Begin with the statement period, supplier account and ledger cut-off. Confirm whether the exercise includes invoices, credit notes, payments and items in transit. A reconciliation is unreliable if the two sides use different dates or populations.
Normalise the source information
Statement references and ERP document numbers may use different spacing, prefixes or formats. Amount signs can also differ between supplier and buyer records. Normalisation should make comparable values consistent while preserving the original source for audit.
Match in controlled stages
Start with strong identifiers such as document number and amount. Use weaker combinations only where they are justified and visible to the reviewer. Multiple possible matches should remain exceptions rather than being accepted automatically.
Classify the exceptions
Common exceptions include missing invoices, unapplied credits, timing differences, duplicate entries and amount discrepancies. Classification helps route each issue to the right action and produces a clearer supplier conversation.
Keep the report connected to evidence
Every matched or unresolved line should retain the source statement entry and the corresponding ledger record. A reviewer must be able to reproduce the result without relying on hidden logic.
The finished reconciliation should be an exception-led review: confident matches are documented and the remaining work is concise, traceable and owned.