How to Reconcile Payables

Reconcile Payables

Reconciling your accounts payable should be done each month. Regularily balancing your accounts will keep them up to date and help to avoid discrepancies with vendors. Each vendor should be reconciled individually to help maintain your proper account balance. In addition, it is easier to find and correct errors when you balance one account at a time.

Print this article

A/P report
Monthly statement

Instructions

- 1
  
  Use the monthly statement provided by each vendor to reconcile your payables for that account. Print out an accounts payable summary for the vendor using your bookkeeping program. If you cannot print out an A/P report, use the vendor's invoices for balancing your statement.
- 2
  
  Compare the invoices on your statement to the invoices shown on the vendor's statement. Check off invoices that match on both statements.
- 3
  
  Add any monthly service or interest charges from the vendor onto your statement.
- 4
  
  Deduct any invoices on the vendor's statement that were recently paid. If a payment was made a short while ago, it may not appear on the vendor's statement. In the same respect, there might be invoices on the vendor's statement that you have not yet received. These invoices should be added to your statement.
- 5
  
  Circle any invoices that are shown on one statement that is not on the other statement. Request copies of any invoices the vendor shows that you do not have a copy of. Ask for them to be e-mailed or faxed to you to avoid delays. If you have invoices on your statement that are not on the vendor's statement, verify whether it is an error. If so, delete it from your statement.
- 6
  
  Add and subtract the changes you made on each statement from the statement total. Compare the new totals. If they match, the accounts have been reconciled. If the new totals do not match, a little further digging is required. Double check the additions and subtractions. Go over the invoices on each statement to find the discrepancy.

Business Owners Toolkit: How do you Reconcile Vendor Statements

Photo Credit business accounts blank image by Nicemonkey from Fotolia.com

Comments

How to Reconcile Accounts Payable
Accounts Payable or AP are classified as current liabilities and reported on the balance sheet. In order to close the books at...
How to Reconcile a General Ledger Account
Every month if not sooner every general ledger account should be reconciled. Reconciled is another word for balanced. This means that the...
How to Manually Reconcile a Bank Account
Keeping track of the balance in your checking account is essential. If you fail to properly reconcile your statement and your checkbook...
How to Reconcile a Bank Statement
Even if crunching numbers is not your greatest talent, doing so is a fact of modern life. If you have a checking...
How to Create a Credit Invoice in QuickBooks
QuickBooks provides convenient tools for managing a wide range of transactions. Keep accurate details of your financial data by entering all of...
How to Reconcile a Returned Check in Quickbooks
Occasionally, a customer will write a bad check, causing a bank to debit the account for the amount of the check plus...
What Is Reconciling an Accounts Payable Statement?
An accounts payable statement usually refers to an accounts payable control account. Reconciling an accounts payable statement is verifying that the accounts...
How to Use Excel to Reconcile GL Accounts
Monthly reconciliation of balance sheet accounts is the only way to ensure that the financial data for a company is properly recorded...
What Are Trade Payables?
Trade payables can be simply defined as monies owed by a business to its suppliers. When a business operates, it must spend...
How to Write Off Accounts Payable from a Previous Year
Accounts payable represents money owed by a company to vendors. In accounting terms, the money owed represents liabilities. Many companies have multiple...
Job Description of an Invoice Clerk
Invoice clerks work in the accounting department with accounts payable or accounts receivable. The invoice clerk ensures the accuracy of invoices from...
What Is the Purpose of a Bank Reconciliation Statement?
Bank reconciliation statements reconcile the bank's records with your company's general ledger. This reconciliation should be completed monthly to check for errors...
What Is a Statement of Account?
Companies that engage in accounts payable (A/P) and accounts receivable (A/R) transactions will usually require a statement of account for properly recording...
How to Reconcile a Monthly Bank Statement For a Business
Whether you use a computer program to track a business's bank accounts or manually write checks and fill out ledgers, you should...
How to Reconcile Bank Statements in Quickbooks
While reconciling a bank account is not usually a fun or interesting job, it is nevertheless an important monthly task. Banks can...
How to Reconcile Your Monthly Bank Statement With Your Checking Account Balance
If you record every transaction you make, you'll find it easy to reconcile your monthly bank statement with your checking account balance....
How to Reconcile a Checking Account in Excel
Keeping on top of your bank accounts is an important part of running a successful business. But reconciling your checking account can...
What Does Full Cycle Accounts Payable Mean?
The first step in the full cycle of accounts payable involves receiving the product or service from the vendor. The employee receiving...
How to Reconcile Bank Accounts
Reconciling a bank account may sound intimidating, but does not require special accounting skills. However, to properly reconcile a checking account requires...
How to Write an Account Statement
Effectively manage cash flow in your company by generating updated statements on all active customer accounts. Create a simple template form. Then...

How to Reconcile Payables

Other People Are Reading

Things You'll Need

Instructions

References

More Like This

Comments

You May Also Like

Related Ads

10 Tips for Used Car Shopping

You May Like