A supplier statement is a free, independent check on your ledger. Most teams file it without reading it.
Compare the supplier's statement with your ledger for the same supplier and the same date, then explain every difference: invoices you haven't posted, payments the supplier hasn't applied, missing credit notes, disputes and timing. Agree the adjusted balances, act on each difference, and keep the signed reconciliation as evidence.
Use a statement dated at your period end, or ask the supplier for one. Run your ledger report for that supplier to the same date. Different dates create differences that aren't real.
Write down the statement balance and your ledger balance. The reconciliation explains the gap between them, item by item, until it reaches zero.
Tick each payment on the statement against your ledger. Payments you made near the statement date that the supplier hasn't shown yet are timing differences: cash in transit.
Tick each invoice and credit on the statement against your ledger, by reference and amount. Normalise references first, since the supplier may format them differently from your team.
| Difference | What it usually means | Action |
|---|---|---|
| Invoice on statement, not in your ledger | Not received, not approved, or lost | Request a copy and find the approver |
| Invoice in your ledger, not on statement | Possible duplicate or mis-posting | Check before paying it |
| Credit note on statement, not in ledger | Credit you haven't taken | Request it and post it |
| Payment in ledger, not on statement | Timing, or applied to the wrong account | Send remittance details |
| Amount differs | Price or quantity dispute | Log the dispute with the buyer |
| Unallocated cash on statement | An overpayment or a duplicate payment | Ask for a refund or offset |
Adjusted statement balance and adjusted ledger balance should agree. The preparer signs and dates it; a reviewer checks the explanations and the age of open items.
Each open item needs an owner and a date. Anything still open at the next reconciliation should be escalated, not carried forward again.
Reconcile your highest-value suppliers every month, any supplier with a dispute, and a rotating sample of the rest each quarter. Also reconcile any supplier whose statement shows a credit balance in your favour; that is usually money owed back to you.
Statements are one of the best fraud and error checks you have. Invoices you have never seen may mean goods ordered without approval. Unapplied cash may be a duplicate payment waiting to be recovered.
Terminology: UK teams often call this a purchase ledger or creditors reconciliation; US teams call it vendor statement or accounts payable reconciliation. The method is the same.
Paste your invoice list and see likely duplicates in minutes. Free Excel file: enter your work email to download it.
The Supplier Statement Reconciliation Template keeps payments in transit, credit notes not yet on the statement and statement items not yet in your ledger as three separate reconciling items, and logs genuine queries instead of netting them into one difference. Excel, no macros, one-time price.
Monthly for your largest and most active suppliers, and quarterly on a rotating sample for the rest.
Ask for one. Most accounting systems can produce a statement in seconds, and the request itself tells the supplier you reconcile.
Related but different. The AP reconciliation agrees your sub-ledger to the general ledger; a supplier statement reconciliation agrees your records to the supplier's.
The supplier has received money from you that it hasn't matched to an invoice. It is often an overpayment or a duplicate payment, and you can usually ask for it back or have it offset against your next invoice.
Last updated 18 October 2026. General guidance for finance teams; check it against your own policies, systems and local rules.