There are times when you’d want to confirm your supplier balances, but you’re not sure from which to base the selection from. There’s the balance and there are transactions during a determined period – two measurable amounts to base the selection from but which to choose. 

Whilst a balance is an easy choice, one we have alreay discussed, the transaction is a more refined one to base a selection on. Transactions are what end up in balances at the end of the day and if you think about it, the more there are transactions (moreover the bigger number there are of transactions taking place, not necessarily amounts) the more there are possibilities for mistakes. Such mistakes end up with inaccurate payable balances we are trying to confirm. As we are confirming balances we have yet to pay to our suppliers it’s important to understand we’re not missing anything.

So with that regard a supplier confirmation letter selection based on transactions makes the most sense to me. Now it’s just a question of where do you draw the line. Is it top 20 suppliers or top 30? Do you include some suppliers to the process regardless of their balance? For instance if some suppliers have zero balances, but a considerable amount of transactions over the period, do you include them as well? I would.