Customer & Vendor e-Reconciliation
Move account reconciliation to digital — send, track and resolve in one flow.
Account reconciliation is the process by which a company confirms mutual balances with its customers and vendors as of a given date. In many companies it still runs on email and spreadsheets: sending is manual, replies are scattered across different people’s inboxes, and at period end it is not possible to tell who has confirmed and who has not. Conforcus e-Reconciliation sends balance confirmations electronically and automatically from within SAP, and tracks counterparty responses and disputes by status. The whole reconciliation cycle is managed end to end from a single panel.
What happens when reconciliation runs on email and spreadsheets
The purpose of reconciliation is to see, before the period closes, that the two parties’ records agree. Most differences are a matter of timing: one side has posted an invoice or a payment and the other has not yet done so. Some point to a genuine dispute. In both cases the difference needs to be seen early, because corrections are far more laborious once the period is closed. Confirming balances with the counterparty is also a common procedure in an independent audit.
Standard SAP shows the balance and the line items of an account, but in most companies sending the reconciliation correspondence, collecting the replies and tracking the outcome remain outside the system. Balances are extracted from SAP, copied into forms and sent one by one. Following up the accounts that do not reply depends on individuals. As the number of accounts grows, sending and follow-up are squeezed into the busiest days of period end, the same days on which audit and closing pressure mounts.
How the e-Reconciliation solution runs the process
The solution is integrated with customer and vendor account (AR/AP) data in FI. Confirmation forms are generated automatically from that data and sent electronically from within SAP, so balances no longer have to be extracted and copied into a form. Because the form is produced directly from FI data, no transfer error can arise between the balance sent and the balance in the system. The counterparty replies electronically, and each reply is matched to the relevant account.
For every account, the stage the process has reached is tracked as a status: whether the form has been sent, whether a reply has arrived, and whether the counterparty has confirmed or raised a dispute. Disputed accounts drop into the dispute worklist and stay there until they are resolved. All of this information is brought together in a single panel, from which the reconciliation cycle is managed.
The process is simpler for the counterparty as well. The confirmation form arrives electronically and the reply is given the same way; instead of arriving in different forms in different people’s inboxes, replies are linked directly to the relevant account. Whether a reply has come in can therefore be seen from the status of the account.
What changes for the accounting team at period end
Because manual sending and follow-up disappear, the team spends its time investigating differences rather than preparing forms. With confirmed and disputed statuses visible as they change, the accounts that have not replied or have reported a difference stand out before the period closes. The team follows up only these accounts rather than all of them. High-risk accounts are noticed early, and the period-end work moves faster.
Because dispatch and response records are kept in the system, the reconciliation trail is ready for audit. The system shows which accounts were sent a confirmation and how each case was resolved, with no need to search through email archives.
Defining the reconciliation practice, and who the solution suits
Which accounts are reconciled, for which periods and with what content varies from company to company. The form content, the dispatch channel and the accounts in scope are therefore defined during implementation to match the company’s existing reconciliation practice. The solution applies these definitions in the same way in every reconciliation period, so the process rests on a defined flow rather than on individuals.
The solution suits companies that work with a large number of customers and vendors and currently run reconciliation on email and spreadsheets. CFOs and finance directors get a single view of where customer and vendor accounts stand ahead of close and audit, while accounting and treasury teams are relieved of the burden of sending and follow-up. The solution is in use across several sectors.
Benefits
- Manual sending and follow-up disappear, period close speeds up
- Live confirmed/dispute status surfaces high-risk accounts instantly
- Audit-ready, fully traceable reconciliation trail
Where it sits in SAP
Integrated with FI AR/AP open items; automated confirmation generation, electronic dispatch, response matching and a dispute worklist. Deployed across multiple sectors.
Who it is for: CFO, Finance Director, Accounting & Treasury
Frequently asked questions
What data are the confirmation forms built from, how do they reach the counterparty, and does the counterparty need SAP?
The forms are generated automatically from customer and vendor account data in FI and sent electronically from within SAP. The counterparty replies electronically and does not need to be an SAP user. Each reply is matched to the relevant account. The dispatch channel and the form content are set during implementation to fit the company's reconciliation practice.
What happens when the counterparty disputes the balance?
Once the reply is matched to the account, its status changes to disputed and the account drops into the dispute worklist. The responsible user investigates the difference against the account's line items in FI and records the outcome. The account stays on the list until it reaches confirmed status, so open disputes are not overlooked at period end.
At period end, how do we see who has confirmed and who has not replied, and what can we show the auditor?
The whole reconciliation cycle is followed from a single panel, where dispatch, response and dispute are visible by status for every account. Accounts that have not replied or are still in dispute can be listed separately, so follow-up concentrates on them. Dispatch and response records are kept in the system, giving the auditor a traceable record of when each confirmation was sent and how it was resolved.
Can the solution be used for both customer and vendor accounts?
Yes. The solution is integrated with accounts receivable and accounts payable (AR/AP) data in FI, and customer and vendor reconciliations are run from the same panel. Which accounts are in scope is defined during implementation.
Does the solution dictate how often reconciliation is carried out?
No. The frequency is set by the company’s own practice and audit needs; many companies reconcile at period ends. Because dispatch is automatic, reconciling more often does not add a proportionate workload for the team. The reconciliation calendar is planned during implementation around the company’s closing calendar.
Where do balance differences usually come from?
Most differences arise from timing: one party has posted an invoice, a return or a payment and the other has not yet done so. A smaller number rest on a genuine disagreement over price, quantity or delivery. The solution does not correct the difference itself; it makes visible which account the difference is on and what status the dispute is in, so that the correction can be made before the period closes.