Supplier statement reconciliation is an accounts payable control in which a business compares the statement of account sent by a supplier with the balance and transactions recorded for that supplier in its own ledger. The statement lists the invoices, credit notes and payments the supplier believes are outstanding. Items that agree are ticked off and the rest are listed.
Typical differences are invoices the buyer has not received or not yet approved, payments in transit, credits awaiting credit note processing, duplicates, and items held as a disputed invoice. Each is followed up with the supplier or corrected internally. Done regularly, usually at month end for the most active suppliers, the check catches missing liabilities before the accounts are closed, prevents duplicate or overdue payments, and gives independent evidence that the payables balance is complete. It complements invoice matching, which tests each invoice when it arrives, and depends on accurate vendor master data.