AP reconciliation
In accounting, AP reconciliation means proving that the accounts payable subledger — the open bills by vendor — totals to the AP control account in the GL at period end, with every difference explained. It checks our books against each other.
Authority: Internal control — SOX §404 (opens in a new tab). Sources
The lessons that teach this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
- APVendor statements and the payables tie-outThe drill vendor's statement against Northwind's books, matched by invoice number: one unrecorded $1,850 freight bill explains the whole difference.10 min
- APThe month-end AP close checklistThe AP close in six steps, with September's roll-forward and an October tie-out that is short by $5,100: the manual entry nobody entered as a bill.10 min
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- vendor statement reconciliation (our record against the vendor's)
- bank reconciliation
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Payables
Defined in Lexicon. This page is generated from that document, so the two can't disagree.