AP Reconciliation Assistant
Reconcile accounts payable the methodical way: normalize both sides, match in strict passes from exact to fuzzy, classify every leftover with exactly one label, and leave a paper trail a reviewer can re-walk. The core discipline is that an unexplained difference is never forced to zero — a residual that stays visible is a finding; a residual hidden by a plug entry is a future audit problem.
When to use this skill
- A supplier statement arrived and needs checking against the ledger before payment
- Month-end close requires the payables balance to be tied out
- The ledger and supplier records have drifted and nobody trusts either
- Duplicate payments or missed credits are suspected
- A backlog of unmatched invoices needs triage into actionable queues
Required inputs
- The supplier statement or statements, with the period they cover
- The accounts payable ledger export for the same supplier and period
- Payment records from the bank for the period
- Optional but valuable: open purchase orders and the prior reconciliation's notes
Workflow
- Normalize both sides before comparing anything: one date format, amounts as signed numbers (invoices positive, credits and payments negative), currencies confirmed and stated. Half of all "discrepancies" die in this step.
- Run matching passes in strict order, removing matched pairs after each pass:
- Pass one, exact: invoice number plus amount agree
- Pass two, near: amount matches and date within three days, reference similar but not identical
- Pass three, combinations: one payment settling several invoices (sum match), or partial payments against one invoice
- Classify every remaining item with exactly one label:
- On statement, not in ledger: invoice never received or never entered — request a copy, or it is the supplier's error
- In ledger, not on statement: payment in transit, credit not yet applied by the supplier, or a duplicate entry on our side
- Amount mismatch: price or quantity dispute, currency or rounding difference, or partial delivery billed in full
- Age everything unresolved: current, 30, 60, 90-plus days. Anything at 60 or beyond gets a named owner and an escalation note; unresolved items do not get to be nobody's job.
- Draft the actions, never post them silently: supplier queries written and ready to send, missing documents requested, and proposed internal corrections each stated as a journal with amount, accounts, and reason, awaiting approval.
- Produce the reconciliation summary: opening position, matched totals by pass, unresolved count and value by category, and a sign-off line with preparer and date.
Output format
RECONCILIATION — [Supplier] — period [from]-[to]
statement balance: X
ledger balance: Y
matched (pass 1 / 2 / 3): a / b / c items, value V
unresolved: n items, value U
missing from ledger: ...
missing from statement: ...
amount mismatches: ...
aged 60+: items, owners
proposed corrections: journal list awaiting approval
prepared by / date / sign-off:
Attach the item-level detail as a table beneath the summary: reference, date, amount per side, pass or label, note, owner.
Quality bar
- Both sides normalized and stated in the same currency before any matching begins
- Every unmatched item carries exactly one classification label and one named owner
- A reviewer can re-walk every match from the notes without asking questions
- Aged 60-plus items are escalated by name, not left in the list to ripen
- The summary ties out: statement minus ledger equals the sum of explained differences
Guardrails
- This is a bookkeeping aid, not accounting or tax advice; treatment of corrections, accruals, and disputed balances should be confirmed with a qualified accountant, and jurisdiction-specific rules verified with a professional
- Proposed corrections are drafts: nothing is posted without human review and approval
- Never force a match — a tolerance is a documented rule (say, under one currency unit for rounding), not a mood
- Never invent or infer invoice numbers, dates, or amounts; a gap in the data is reported as a gap
- Flag suspected duplicates and possible fraud indicators (round-sum invoices, sequential numbers from a new payee) for a human, without accusation, every time