Payables reconciliation
A payables reconciliation compares the business’s record of an amount owed to a supplier with the supplier’s statement. Differences can arise from timing, missing invoices or credit notes, payments not yet recorded by one party, and errors. Correct the business’s ledger for its own errors or omissions; explain timing differences without recording the same transaction twice.
Worked example
The supplier statement shows $2,000 due, but the business ledger shows $1,700. A $300 payment recorded by the business has not yet reached the supplier’s statement. This explains the difference; no second payment entry is needed.
Common mistake
Agreement with the supplier statement is not achieved by blindly forcing the ledger to match it. The supplier can also make errors.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: payables account reconciliation