What is a Supplier Statement in AP?

A Supplier Statement in Accounts Payable (AP) is a document sent by a supplier to a business, summarizing the transactions between them over a specific period. It helps verify the accuracy of outstanding invoices, payments, and credit notes.

Key Components of a Supplier Statement:

1. Supplier Details – Name, address, and contact information.
2. Statement Date – The date the statement was generated.
3. Opening Balance – Any unpaid amount carried over from previous periods.
4. Invoice Details – A list of invoices issued by the supplier, including:
   • Invoice number
   • Invoice date
   • Due date
   • Amount
5. Payments Received – Any payments made by the business to the supplier.
6. Credit Notes – Adjustments, refunds, or discounts applied to invoices.
7. Closing Balance – The total outstanding amount due to the supplier.

Purpose of a Supplier Statement in AP:

• Reconciliation: Ensures that the company's accounts payable records match the supplier’s records.
• Accuracy: Helps identify missing invoices, overpayments, or discrepancies.
• Cash Flow Management: Assists in planning payments to suppliers.
• Audit and Compliance: Provides a record of transactions for internal and external audits.

How to Use a Supplier Statement in AP Reconciliation:

1. Compare the supplier statement with your AP ledger.
2. Verify that all listed invoices have been recorded in your system.
3. Check for any missing payments or unrecorded invoices.
4. Investigate discrepancies and resolve them with the supplier.
5. Update records and schedule payments accordingly.

Would you like a supplier statement reconciliation template or further guidance on how to handle discrepancies?