A part of year-end closing is always confirming balances you have in your balance sheet. When we say „confirm“, we do mean agreeing them with the other party the balances are owed to or to be collected from.
Whereas we have discussed the confirmation procedure and even shared a template with you, what we would like to stress with this post, is that it’s not just confirming, i.e. sending out the letter, but also making sure the correct balance is as a result in your accounts.
The replies which come back may or may not agree with your records. If they agree, it’s all good and you can just make a “check” behind the balance since it’s confirmed. However, in case the reply is not exactly what you expected, the difference needs to be sorted. Usually they come with a few comments stating invoices missing or saying some invoices are recognized in another period etc. When this is the case, you always need to remedy it in a way that you either request or resend the invoice, or moreover just rethink whether any adjustments are needed into your accounts.
Always the question in this case is of course, to which period the expense relates to or when were the goods received. Do not take the reply as pure cold as they may also be mistaken with their records. It’s always essence over text and as such you need consider the shipment terms, period the service was received etc.