Supplier statement reconciliation

What the supplier statement reconciliation does

Suppliers send statements that rarely match your books exactly. List each invoice with the amount on the statement and the amount you have recorded, and the workbook shows the difference, labels each line as agreed, missing in your books, missing on the statement or amount differs, and totals what needs to be resolved.

Who it is for

Accounts clerks, bookkeepers and business owners who pay suppliers on credit, and auditors checking that payables are complete.

How to use the workbook

1. Enter the supplier's name and the statement date in the notes you keep with the file.
2. List each invoice number with the amount on the statement.
3. Type the amount you recorded in your own books for the same invoice.
4. Read the status and resolve every line that is not agreed before you pay.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Statement amount against your books
• Difference for every invoice
• Agreed, missing or differs status
• Totals on the statement, in your books and the net difference
• Summary count of each status with a chart

The workbook has these sheets: Instructions, Reconcile, Summary. The main table has the columns Invoice number; Supplier; Amount on statement; Amount in your books; Difference; Status; Action taken. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Reconcile every statement before you pay; it prevents paying twice.
• Ask the supplier for a copy of any invoice you do not recognise.
• Record credit notes as negative amounts.
• Fix differences in your own books promptly so the next month starts clean.

Why keep this record

Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.

Read how to keep business records for KRA for the wider picture. Free calculators that go with it: Vat return calculator. See more accounting templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: VAT Return Calculator
• Guide: VAT invoices and quotations in Kenya: what to include and common mistakes
• Guide: How to use M-Pesa statements to prove income and expenses
• Guide: Bookkeeping for small businesses in Kenya: how to get started
• Another template: Cash flow statement (direct method)
• Another template: Weighted average stock ledger
• Another template: Balance sheet template

Need something different? Request a custom template, browse all guides or see every Excel template.