Supplier statement reconciliation compares the supplier’s account with the company’s purchase ledger and explains every difference. Start from a common statement date and match documents individually. A mismatch does not automatically mean the supplier is right, the bookkeeper is wrong or a balancing expense is needed.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Agree the comparison date

Obtain the supplier statement and the company’s ledger for the same supplier and date. Confirm the legal entity, currency and account reference. A supplier with several branches or customer accounts may issue statements that cover different transactions. Record the scope before comparing balances.

Keep the original statement unchanged. Work on a separate schedule with columns for supplier reference, company reference, amount, difference category, evidence and owner. This makes corrections reviewable and avoids losing the supplier’s starting position.

Separate the common differences

Look for invoices not received, invoices entered twice, unallocated payments, credit notes and documents posted in a different period. Check the underlying invoice or payment evidence before proposing an adjustment. A supplier statement is useful reconciliation evidence, but it does not replace every source document needed to support an accounting or tax entry.

Example: a missing credit and payment in transit

The supplier statement shows S$7,000 due. The company has recorded a S$500 credit note not yet shown by the supplier, and a S$2,000 payment sent just after the statement date. Document the credit separately from the later payment. Do not subtract both without checking the date and whether either item was already included.

Resolve disputes with the right owner

Send missing-document requests through the approved supplier channel. Ask the purchasing team about disputed quantities or prices. Finance should not invent a discount or accept an unsupported charge simply to clear the difference. Keep disputed items visible and record who can approve their eventual treatment.

Review before payment and month-end

Ask the accountant to approve any ledger corrections and preserve the audit trail. Reconcile the revised balance after posting, then keep the supporting invoices, credit notes and bank evidence together. Review the schedule before an authorised payment run so that the company does not pay a duplicated or already settled item.

Related practical guidance

For the surrounding work, see bookkeeping basics, bookkeeping and accounting, company records to keep.

Official guidance: IRAS company recordkeeping requirements.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.