Step 1: Review the Opening Balance -The start line for the supplier statement reconciliation is to agree the opening balance shown on the supplier statement with the opening balance on the account’s payable ledger account for the supplier.
Step 2: Review the Period Entries - All the things which appear on both the supplier statement and on the supplier’s account within the accounts payable ledger should be marked with a tick mark. These things can now be eliminated from the reconciliation process.
Step 3: Allocate Credit Notes and Payments - All credit notes and payments should be allocated against invoices in suppliers’ system.
Step 4: Differences - All remaining items not eliminated in steps 1 to 3 above represent either item on the supplier statement or not within the account’s payables ledger.