Hi all,
Kindly tell me what is vendor reconciliation & how is it different from Bank Reconciliation.Also do tell me the procedure for Reconciling the vendor accounts with any journal entries & examples...Thanks in advance.
Srinivas (Student.) (152 Points)
27 July 2011Hi all,
Kindly tell me what is vendor reconciliation & how is it different from Bank Reconciliation.Also do tell me the procedure for Reconciling the vendor accounts with any journal entries & examples...Thanks in advance.
mohamed ziaudeen
(financial controller)
(58 Points)
Replied 28 July 2011
Yes,vendor reco is definitely accounts related job.Its part of accounts payable activity where one has to reconcile vendor balance in his books of accounts with that of the vendor balance in the books of the vendor.
Take a statement of account from the vendor
The statement must have invoice wise detail of each transaction.
Compare the statement with the vendor accounts as per your book.
Any difference should be separately shown in the reconciliation statement.
Sample reconciliation statement:
Balance as per ABC(Vendor) Statement:
Less: Payment not reflected in vendor a/c
Less:Invoices not booked by us
Add:Invoices booked by us but not reflected by vendor
Balance as per our books of accounts
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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