Reconciliation a/c

Reconciliation a/c is G/L account, to which transactions in the subsidiary ledgers (such as in the customer, vendor or

assets areas) are updated automatically.

Typically, several sub ledger accounts post to a common reconciliation account. This ensures that the developments

in the sub ledger accounts are accurately reflected in the general ledger (that is, in line with balance sheet

conventions).

For example there will be a reconciliation account for all the local vendors, which will be a balance sheet a/c.

The reconciliation a/c will be given for a vendor in the vendor master record and the head for the a/c will be given as

sundry creditors.

vendor reconciliation means statement showing difference of Company payable to vendor a/c balance & vendor outstanding bal. It is reconcile from both account bal company and vendor. If there is is any advance to vendor it will reduce the bal from company payble amount. 

vendor reconciliation 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. 

A vendor reco is like a statement to where we find out the Differences in vendor books as per our books. Diff may be as follows:

>>> Vendors Invoices did not entered in our books.>>> Our Debit note note not entered in vendors books.>>> Our payment did not entered in vendor books.>>> credit given by vendor did not entered in our books.>>> Invoice amount difference.

vendor reconsilation is nothing but differece between vendor accout to company payable account. we need to cross check the all like vendor invoice value, credit note, debit note. 

adjustment of trade suppliers(creditors)and advances paid tosuppliers and cash discount received is equal to net amountpayble to vendors/supplers. 

Vendor(service provider) is one from whom we(service acceptor)received services.So,Vendor Reconciliation(V.R) means to know outstanding receivable as per vendor A/C and outstanding payable as per our(service acceptor) A/C.

For doing V.R, one who is accepting service ask for Statement of accounts(only for outstanding receivable)of Vendor's, so that we can check and find out the reason for discerpancies(if any) and can take corrective action to close it.