In accounting, reconciliation refers to the process of ensuring that the sets of two or more records are in agreement. If account reconciliation deals with the balancing of multiple sets of records between departments within a company (a purchase order or an order receipt) and intercompany accounts (an invoice) then at the end of a reporting cycle (monthly, quarterly, annually) the consolidated accounts receivable and accounts payable must have the same balances.

Reconciliation means matching records for accuracy.

This means that the capital and assets that are taken from an account match what is actually sent to the supplier for the good or service. Account reconciliation, using the three way matching method built-in to Purchase Control, institutes appropriate controls to keep balanced intercompany accounting.

Reconciliation policies.

Policies for account reconciliation usually include:

  • specifications for recording and accounting the reconciliation process
  • delegated responsibilities for administration and internal controls
  • defined reconciliation responsibilities for individuals and departments
  • formal confirmation procedures, such as purchasing requisition and approval
  • dispute resolution

Purchase Control offers a robust account reconciliation solution, improving the accuracy of bookkeeping balancing. Our online procurement software offers the resources for the accounts payable department to publish audits and reports with confidence.

Purchase Control makes reconciliation simple and secure.

Account reconciliation using Purchase Control’s online purchase order software can offer:

  • accurate calculation of a charge for a purchase order
  • clarity in charges across multiple departments of your organisation
  • clear communication and collaboration between purchasing and payment departments
  • compliance with requisition and purchasing policies and procedures
  • full audit trail quickly and accurately resolves inter-department discrepancies and intercompany disputes

What does Reconciliation mean in accounting?