Vendor Reconciliation Service In Dubai
Vendor Reconciliation Service by Beyond Numbers
When a corporation finds it more challenging to reconcile the supplier ledger and the supplier’s accounts statements, Beyond Numbers offers vendor reconciliation service. It occurs when there are a lot of transactions and the contract contains records pertaining to discounts, rebates, returns, etc.
The process of comparing the statement provided by a vendor to their account is known as vendor reconciliation. It is necessary to compare vendor invoices with the entity’s system in order to reconcile vendor statements. It involves examining the entity’s vendor outstanding balance and vendor payables account balance. By verifying vendor statements, a company can ensure that there are no inconsistencies or mistakes in the costs charged by the vendor and the goods, supplies, or services company actually received.
Vendor reconciliation involves identifying differences or inconsistencies between the records of vendors and the system. This report assists in boosting control over vendor spending, decreasing vendor enquiries, and improving vendor relationships. The process of reconciling various statements and multiple daily transactions poses significant challenges for the controllers in maintaining both timeliness and accuracy.
Advantages of Vendor Reconciliation with Us
- Avoids the difficulty of the latter supply
- Avoid paying the incorrect vendor.
- Recognise when your vendor has not paid you.
- helps prevent overpayment
- Establish a connection between truthfulness and respectable trade
- makes certain that all supplier accounts are routinely credited with the invoices paid for the supplies ordered.
- Make that the supplier’s account is correctly credited for purchase returns.
- Make sure that any discounts, rebates, or other compensation received from suppliers or in accordance with the terms of any agreements were properly reported as charges or debits to their accounts.
- controls the credit policy for efficient cash flow management.
Materials needed you would Need : Supplier's ledger statement
- Delivered debit notes to suppliers
- Credit Notes from Suppliers Recognised
- Receipts of payments made to suppliers
- duplicate bank statements for payments verification
- Replicate supplier ledger account
- Replicas of Contracts/Agreements lodged with suppliers by the organization’s management
Knowing Vendor Reconciliation Process
Accounts Payable’s vendor reconciliation procedure entails finding differences between vendor bills and your actual costs. The process comprises comparing the sums that your vendors and suppliers charge your business with the sums that you owe them.
Your business is protected from financial dangers thanks to the accounts payable process’s vendor reconciliation, particularly from overspending.
Our Classic Guide to the Vendor Reconciliation Process
Although the advantages of conducting vendor reconciliation can be appealing, reconciling thousands of vendor invoices and related documents every month can be a demanding task. The manual process of reconciling statements involves a significant amount of printing, verifying, and processing to generate different spreadsheets. Typically, the vendor reconciliation process entails the following steps:
Check the opening balance
Checking the opening balances on the supplier statement and the ledger for your business comes first. Your computations will begin with these specifics as a guide. The opening balance for the current month should match the ending balance from the prior month.
Compare the invoices’ line items to them.
The next step is to compare the line items on the vendor statement with the invoice you got after checking the opening balances. As you proceed, cross off any information that matches.
Reconcile discrepancies between the vendor statement and the accounts payable ledger
With your supplier, you must settle any data that don’t match up with your account payable ledger. These things might be in your logs but not on the vendor statement, or the other way around.
These problems typically result from timing inconsistencies and omissions or mistakes.
Distributing credit notes
You might occasionally be given a credit agreement by a supplier, which usually outlines the timing and conditions of payment. In that situation, make sure that all credit notes that are represented in the vendor statement are applied to the invoice.