Four checks before you pay a supplier
The previous lesson built a payment schedule. One step still stands between it and the transfer, and most owners skip it: reconciling the supplier statement against your own records. Pay it as printed and you can settle an invoice twice or pay for goods you returned. Here are four checks that come before every transfer, run from WhatsApp.
Why the statement never matches your books
A difference is not proof of an error. Most gaps are timing: goods shipped at month end that arrived the next month, a transfer missing from a statement printed that morning, or a return accepted before the supplier issued a credit note. The danger is when those gaps hide real errors: a duplicated invoice, a price you never agreed, or a quantity billed above what you received. The goal is not a zero difference, but a reason behind every riyal of it.
Check 1: start from the opening balance
Before you open this month's detail, compare the opening balance on the statement with your closing balance last month. If they differ, the gap is old and you will spend an hour reviewing perfectly good invoices. Close it first, or park it as a known open item. A reconciliation that starts in the middle ends with a number nobody can explain.
Check 2: sort every difference into three boxes
Each mismatched line belongs in one of three boxes, each with its own action:
| Type of difference | How you recognise it | Action |
|---|---|---|
| Timing | Both sides recorded it, on different dates | Note it on the sheet; it clears next month |
| Missing document | Only one side recorded it, but it happened | Request the document, or record it on your side |
| Real error | Price or quantity conflicts with the order and receipt | Hold that line alone and raise it with the supplier |
This split is the heart of reconciliation. Without it the difference becomes a vague conversation that ends in an arbitrary settlement, instead of a specific claim backed by a specific document.
Check 3: match each invoice to the order and the receipt
Disputed invoices are settled by three documents, not by the statement. The purchase order fixes the agreed price and quantity, the goods receipt records what entered the warehouse, and the invoice states what the supplier claims. Any line where the three disagree is held alone, without freezing the rest of the payment. Returns matter too: goods you sent back are cleared by a credit note from the supplier, a formal document the Zakat, Tax and Customs Authority requires to adjust the original invoice, not by an internal entry. Connect stock movements and receiving to your accounting records.
Check 4: approve the payable figure, document the rest
You now have two numbers: an agreed amount that goes out on its scheduled date, and a held amount waiting for its document. Send the supplier a written message with the approved amount, its transfer date, and what is missing on each held line. That message protects the relationship: you did not delay payment, you paid what was agreed and named what was missing. Keep the monthly sheet with its documents. Read more about invoice and document handling.
Running it from WhatsApp
The owner of a building-materials shop photographs the statement and sends it:
Owner: Here is the supplier statement for this month, reconcile it against our records
System: Opening balance matches. Three differences this month: a transfer you sent that is missing on their side, a return with no credit note, and an invoice priced above the purchase order.
Owner: Approve the agreed amount and hold the invoice with the wrong price
System: Approved amount added to this week's payments, the disputed line held, and a request sent to the supplier for a credit note on the return and a corrected price.
Ten minutes stopped a payment that was not due and opened a documented claim. Read more about running operations from WhatsApp.
Checklist before any transfer to a supplier
- Does the statement's opening balance match your closing balance last month?
- Is every difference classified as timing, missing document, or real error?
- Were disputed invoices checked against the purchase order and the goods receipt?
- Does every return have a supplier credit note, not just an internal entry?
- Was the held line stopped without freezing the rest of the payment?
- Did the supplier receive a written note with the approved amount and what is missing?