Supplier statement reconciliations ensure all sums due to suppliers are accounted for and that they are only accounted for once. Without this, an organisation runs the risk of understating its liabilities and costs, and increasing exposure to duplicate invoices and payment.

1. Whitepaper:
Supplier Statement Reconciliations:
Manual Chore or Critical Value
Adding Process?

2. 2
Supplier Statement Reconciliations: Manual Chore or
Critical Value Adding Process?
www.autorek.com +44 (0) 845 603 3613
Why have Supplier Statements become Unfashionable?
Vendor relationship management has seen many initiatives to improve collaboration with vendors often driven by
the vendors themselves. An increase in e-invoicing, dedicated purchasing portals, goods supplied on sale-or-
return, dedicated inventory held at vendor site have all seen an increase. It is a key strategic initiative that many
organisations are still maturing. Communication with vendors is often not placed high on the operational and
finance function (especially agenda).
Supplier statement reconciliations have a vital role to play in this process but supplier statements have become
unfashionable over the years (possibly due to cost reduction pressures, scarce resources etc) with the
consequence that many organisations have discovered that:
 They have lost discounts for early settlement
 There have been increases in base prices as suppliers factor in a notional finance cost
 Credit terms and credit limits have shrunk to minimise the suppliers’ risk
 Increased call volumes as a result of heightened interest from suppliers’ credit controllers to purchase
(bought) ledger teams
 Incidence of legal or pre-legal collection costs as suppliers move more quickly to advanced stages of
collection
 There has been interruption of supply as accounts are put on hold more quickly and more often
 A larger number of vendors have been used as limits are reached resulting in extra administration and
possible loss of volume discounts
 They have suffered reputational damage, possibly via trade associations “gossip”
 An increase in duplicate invoices and payments (fraudulent or negligent)
 There has been (or a threat has been) of regulatory sanction (e.g. UK Public Sector) for failure to meet
stipulated payment criteria
 Staff turnover as stresses of vendor management pressures mount has increased

3. 3
Supplier Statement Reconciliations: Manual Chore or
Critical Value Adding Process?
www.autorek.com +44 (0) 845 603 3613
So what is different today?
As well as an increasing focus on better vendor management, a series of high profile corporate failures has seen
attention turn to the proper recording of liabilities and an increase in attention to accounting controls. One of the
most fundamental controls is a third party confirmation of balances. As a result, risk management professionals,
internal and external auditors are turning to the control that supplier statement reconciliation gives to mitigate
material misstatement of accounts.
So how can AutoRek help?
AutoRek reduces manual effort in reconciliations by over 75%. We import data from multiple sources, we enrich it,
we disaggregate (explode) it, we match it and we report and escalate the outcomes.
AutoRek’s powerful matching capability allows most of the transactions to be automatically matched even if the
amounts vary slightly due to charges or exchange rates. Our matching capability is in excess of a million records
a minute and in one client we have achieved match rates on 5m records per month of 99.8%.
The diagram below shows how we will build the automated solution building specific interfaces for the larger
accounts and a generic template for the lesser accounts. That template can even be populated using paper
(scanned) documents if electronic statements can’t be sourced. A real pragmatic approach to deliver rapid
business improvements and benefits and by sending the analyses automatically (if you wish) to your vendors, you
are keeping them fully informed of their account status with you improving relations and reducing calls!

4. 4
Supplier Statement Reconciliations: Manual Chore or
Critical Value Adding Process?
www.autorek.com +44 (0) 845 603 3613
Find Out More
For more information or to arrange a demonstration of AutoRek contact:
Graeme McKee
AutoRek
Email: graeme.mckee@autorek.com
Tel: +44 (0) 845 603 3613

5. 193-197 Bath Street
Glasgow
G2 4HU
+44 (0) 845 603 3613
www.autorek.com
About AutoRek
AutoRek is a leading global provider of expert financial data
management software. Our solutions are purpose built to improve
the quality and efficiency of data management, and incorporate
high performance reconciliation software, cash applications and
compliance products.
Using AutoRek, up to 99.9% of transactions can be reconciled
automatically, at a rate of tens of thousands of records per
second. Our client base comprises many of the world’s largest
corporations. For them, AutoRek helps increase their control and
visibility over the entire financial process, enable reduced costs
and improve adherence to financial legislation.