About Vendor reconciliation (statement vs. ledger vs. ERP)

Vendor Reconciliation is the process of matching and verifying vendor account balances between the vendor’s statement, the company’s ledger, and records maintained in the ERP system. The goal is to ensure accuracy and consistency in financial data, identify discrepancies, and maintain healthy supplier relationships. This process involves comparing invoices, credit notes, payments, and outstanding balances to confirm that both parties reflect the same transactions. Regular vendor reconciliation helps detect duplicate entries, missed payments, or unrecorded credits, thereby improving financial transparency and audit readiness. By aligning the vendor statement, ledger accounts, and ERP data, organizations can maintain up-to-date payable records, avoid disputes, and ensure accurate financial reporting.