Vendor Statement Reconciliation Software
A vendor statement reconciliation solution exists to identify these discrepancies so that users only work on the transactions that don’t match or exist instead of manually checking each transaction on the statement.
It's not just about AP Invoices
Our Vendor Statement Reconciliation Software will help
Many AP departments start with a solution for AP invoice capture and automation. That same technology can be used to capture your vendor statements and automate the reconciliation of those transactions against your ERP system. At the end of each month, the business receives statements from the vendors where the line items represent invoices and/or credit memos from the statement date range. Vendor statement reconciliation software captures the statement document, extracts the header and line item data from those vendor statements, and then makes sure each transaction on the statement exists in the accounting/ERP system. No more work is involved for transactions that do exist. For transactions that aren't found, exception queues can be used for AP user interaction or even a simple email sent to the vendor requesting the missing document may suffice.
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What is Vendor Reconciliation Software?
Vendor reconciliation software, also known as vendor statement reconciliation software, automates the process of matching vendor statements to your internal records. It identifies discrepancies, enabling you to address issues promptly and accurately. By automating these reconciliations, this software saves significant time compared to manual processes.
Automated reconciliation software digitizes and organizes vendor data, reducing human error and ensuring consistent accuracy. This software updates records in real time, ensuring your financial data stays current. Many platforms integrate seamlessly with existing accounting systems, enhancing data consistency across platforms.
Key features often include advanced reporting tools, which help track discrepancies and trends. These insights allow better financial planning and decision-making by providing visibility into vendor activities. Automated alerts can notify you of anomalies, ensuring prompt action and maintaining healthy supplier relationships.
Using vendor reconciliation software, you enhance efficiency, accuracy, and reliability in your accounts payable process. This system supports strategic financial management, letting you focus on growth rather than manual reconciliation tasks.
How Does Vendor Statement Reconciliation Work?
Capture statements in paper or electronic format.
Extract header and line item data from the statements without using templates.
Data is used to index the statement for easy storage and retrieval. Data is used to automate the matching of statement line items to the transaction in your accounting/ERP system.
Exception queues allow users to manually review the transaction in question and take appropriate action with the vendor. The main question answered is: Why does the AP invoice or credit memo exist on the vendor statement but is not in our accounting/ERP system?
Within the workflow, users can add notes pertaining to the actions performed, work on task lists related to each transaction, view the supporting statement document, and share information internally or externally as required.
Dashboards with graphical elements can be viewed or shared to easily see the status of matches or exceptions. Users and managers with the appropriate rights can drill down to the transaction and its supporting document, notes, and tasks – directly from the dashboard.
Better accuracy.
Captured quicker, more accurate, and swifter data entry, identifying the exceptions, and tracking missing transactions enable you to stay on top of payments and credits and keep a tighter and compliant record of transactions. Visibility into this information contributes to significant and repeatable gains in financial health.Increased efficiency.
With employees freed from manually reconciling your vendor statements, they can contribute in more strategic ways to better your financial operations. You’ll no longer need to have employees manually enter data, match data, track down documents, make calls, physically fax, copy, or re-file the documents.
Benefits of Automated Reconciliation Software
Investing in vendor statement reconciliation software can transform your accounts payable process. You'll experience significant time savings and improved accuracy, allowing your team to focus on more strategic tasks. The software's ability to integrate with your existing systems and provide real-time updates ensures your financial data is always current and reliable.
With features like automated alerts and advanced reporting tools, you'll stay on top of discrepancies and maintain better control over your financial operations. Ultimately, adopting this technology empowers your business to enhance efficiency, reduce errors, and drive growth.
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Three Ways to Streamline Invoice and Credit Memo Reconciliations
Processing vendor statements is both a notorious time-suck for businesses and one of the most crucial operations to make error-free. Vendor statements include details relating to invoices and credit memos within a certain timeframe. The accounts payable (AP) department has to manually reconcile this data by matching the data on the statement to the data […]