GlossaryRetail & Inventory
Vendor Reconciliation
Also called: supplier reconciliation
What is Vendor Reconciliation?
Vendor reconciliation compares your record of what you owe a supplier against their statement of what they say you owe, and explains every difference — unrecorded invoices, missing credit notes, payments in transit.
Why Vendor Reconciliation matters
Supplier disputes get harder with age. Reconciling quarterly turns a year-long argument into a short list of items both sides can still remember and evidence.
How Vendor Reconciliation works in practice
Request a statement, match invoice by invoice, and list differences by cause rather than as one net figure. Missing credit notes for returns are usually the largest single category.
Frequently asked questions
Quarterly for regular suppliers, and always before agreeing a large settlement or closing an account.