Receivables reconciliation
A receivables reconciliation compares the seller’s receivable records with relevant customer records or other evidence and explains the differences. Identify omitted receipts, credit notes, disputed invoices and timing differences. Correct errors in the seller’s own ledger with appropriate entries; explain a customer’s unprocessed item without recording the same transaction twice. Reconcile general-ledger totals to supporting detail where relevant, but distinguish that internal check from third-party confirmation.
Worked example
The seller records $1,000 due and the customer shows $800 payable. A valid $200 credit note was omitted by the seller: debit sales returns $200 and credit receivables $200, ignoring tax.
Common mistake
Do not simply force the ledger to the customer’s figure. Establish whether the difference is a genuine adjustment, an error by the customer or a timing item.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | K1 | Direct | July 2027–August 2028 |
Related terms
Also called: Trade receivables reconciliation, Customer account reconciliation