Wednesday, February 1, 2012

Creditors reconciliation

Usually, every month our suppliers (creditors) send us a statement of accounts. The statement of accounts usually show amount we owe them and its details such as invoice number, invoice date, delivery order number and amount.

We want to compare our suppliers (creditors) items in our accounting ledger with the statements received from suppliers/creditors.

Remember, when we receive an invoice from supplier/creditor, we record the particulars in columns in 2 rows (row for debit and credit particulars). The columns are ....

When we receive statement of accounts from supplier, we want to check whether their record is same with ours.

We need a specific column to be used to compare the items in the statement with our record. Give a title to the column, may be CREDIT RECON.

Cells in the column are used to mark whether the item in the statement is also appear in our record. Use same marking throughout. For example, we can use word OK to indicate that our item also appear in the supplier statement.

If an item exist in the statement but not appear in our record, then do not mark anything, leave the cell blank.

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