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Key takeaways
- A statement of account is a summary of all transactions between a supplier and a customer over a period, ending in a balance.
- Suppliers send it monthly. Buyers compare it with their own ledger to find missing invoices, unapplied payments and credit notes.
- It is not an invoice and does not ask for new money on its own. It reports what is owed.
- A supplier statement is the cheapest audit control an accounts payable team has.
Free PDF and Excel: Statement reconciliation template. Get it below
What a statement of account is
A statement of account is a periodic summary sent by a supplier to a customer showing invoices raised, payments received, credits issued and the outstanding balance at a date.
It differs from an invoice in one important way: it contains no new demand. It is a mirror held up to your ledger. The buyer holds both and the two should agree. When they do not, the gap is nearly always one of four things: an invoice you never received, a payment that was applied to the wrong account, a credit note not yet booked, or a timing difference.
A buyer's ledger shows it owes a supplier 14,200. The supplier's October statement shows 17,450. The accounts payable clerk lines the two up and finds invoice 8841 for 3,250, which was emailed to a former employee's mailbox and never entered.
The invoice is registered, approved and paid. A small mismatch that could have turned into a late-payment dispute is closed in ten minutes.
What it contains
| Field | What goes in it | Why it matters |
|---|---|---|
| Statement date and period | The date issued and the period it covers. | Lets you compare like with like. |
| Opening balance | What was owed at the start of the period. | Should equal last statement's closing balance. |
| Invoices | Number, date and amount of each. | Checked against your ledger. |
| Payments received | Date and amount, with reference. | Shows whether your payments were applied. |
| Credit notes | Number and amount. | Often the missing piece in a reconciliation. |
| Closing balance | The amount owed at the date. | The number to agree. |
| Ageing | Amount in current, 30, 60 and 90 plus day buckets. | Shows what is overdue. |
Free PDF and Excel
Statement reconciliation template
A supplier statement reconciliation sheet with a worked example and a monthly checklist for accounts payable.
- Statement layout
- Reconciliation sheet
- Monthly checklist
- Excel reconciler that shows the unexplained difference
How to reconcile in five steps
- Take the closing balance on the supplier's statement and the balance in your ledger on the same date.
- List every invoice on the statement and tick it against your ledger.
- List every payment you made and tick it against the statement.
- Note credit notes missing on either side.
- Write down the explained differences and agree the correcting entries.
See invoice versus statement for the difference in one table, and remittance advice for telling the supplier what you paid.
Mistakes
- Ignoring statements because the invoices were all paid.
- Reconciling only the total and not each line.
- Letting old unreconciled items sit for months.
- Sending statements to customers with no ageing.
- Mixing up a statement with an invoice and paying twice.
- Statement is from the supplier's own system.
- Opening balance equals last month's close.
- Each invoice ticked against the ledger.
- Each payment ticked against the statement.
- Credit notes matched.
- Differences explained and cleared.
Last checked: 19 October 2026. General accounting practice. Format and retention rules differ by country.
Frequently asked questions
What is the difference between an invoice and a statement of account?
An invoice asks for payment of a specific sale. A statement summarises all invoices, payments and credits and shows a balance.
How often should a statement of account be sent?
Monthly is common for active accounts. Quarterly works for low-volume relationships.
Who prepares a statement of account?
The supplier, from its sales ledger. Buyers also prepare their own reconciliations.
Can I use a statement to chase payment?
Yes. A statement with an ageing section is a polite way to show what is overdue.
What if the statement does not match my records?
Reconcile line by line. Common causes are missing invoices, unapplied payments and uncollected credit notes.