Reconciling payables
Objective: Find differences between supplier statements and the books.
Recommended first: Paying suppliers, Subledgers and control accounts
At month-end, compare each supplier's statement with your subledger. Typical differences: bills in transit (on the statement, not yet received), payments in transit, and credit notes not yet recorded. Then agree the subledger total to the control account.
Supplier statement reconciliations catch missing bills, unrecorded credit notes, and payments the supplier has not applied. Timing differences — such as a payment sent on the last day of the month — are noted but not adjusted. Real differences are corrected in the books or raised with the supplier.
Check your work
- Are timing differences separated from real differences?
- Are missing bills recorded in the right period?
- Does the subledger total agree with the control account?
Keep a short note of each reconciling item and its expected resolution date. Items that stay unresolved for more than a month deserve a call to the supplier.
A supplier statement includes a $210 utility bill not yet recorded.
| Account | Debit | Credit |
|---|---|---|
| Utilities Expense | $210.00 | |
| Accounts Payable | $210.00 |
Common mistakes
✗ Adjusting your books for a payment the supplier hasn't received yet.
✓ That is a timing difference.
Guided practice
Use hints freely here.
Item 1 of 1
Accounts Payable ledger balance
Accounts Payable opens with a credit balance of $2,600.00. Two supplier bills for $880.00 and $480.00 are posted, and a payment of $1,500.00 is made. What is the closing credit balance?
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Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 4
Record a utility bill to pay later
On Mar 31, 2026, Rise & Shine Bakery receives its $125.00 gas bill for the month, due in 15 days.
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References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.