What is supplier's statement?

Question

I want to know in more detail, what is included in the suppliers statement, and how does it help in reconciling??

Answer 1

Basically, it allows you to reconcile the transactional details of your A/C as shown in the suppliers sales ledger (the suppliers statement shows this) with the equivalent transactional details as shown in your employers purchase ledger.

The two should be the same, but there could be disputed items, errors, or timing differences. It is important to understand the make up of any difference between the account balance showing in the suppliers sales ledger, and the account balance showing in your purchase ledger.

Answer 2

A supplier's statement of account is sent to you by your supplier (vendor) monthly. It lists out the dates, invoice numbers and amounts of the goods you bought from him for that month, as well as the dates and amounts of money you paid him during the month. If he has issued you any credit notes, the statement will also list them out. At the end it shows the amount you owe him at the end of the month. It helps you in reconciling your book balance to his balance since it has all the details. Usually the reconciling items will be invoices you omitted to take up, or amounts you paid him right at the end of the month which he hadn't received yet at the time he prepared his statement.