Payment reconciliation matches money sent or received with invoices, bank or payment-provider records, fees, exchange differences, and accounting entries. The objective is to explain the complete transaction and identify missing, duplicated, short, or incorrectly applied payments.
Quick reference for Payment reconciliation
| Check | What it means for the transaction |
|---|---|
| Category | Orders, invoicing, accounts payable and accounts receivable |
| Record to keep | Link the order, delivery evidence, invoice, approval, adjustment and payment reference that belong to the same transaction. |
| Do not infer | An approved invoice or recorded payment does not by itself prove that funds have settled or that the open balance is reconciled. |
Payment reconciliation and nearby terms
- Remittance advice: Remittance advice is information a payer sends to explain which invoices, credit notes, or balances a payment covers.
