How vendor reconciliation works in CleverBalance

From uploading vendor statements to reviewing matched and unmatched transactions, CleverBalance handles the entire reconciliation process automatically using structured rules and AI.

No credit card and 14-day free trial

Upload

Upload vendor statement and AP ledger

Match

System matches transactions using rules and AI

Review

See matched and unmatched transactions clearly

From upload to reconciliation in minutes

Upload, match, and review through a simple, structured flow.

Step 1: Upload your data

Upload vendor / supplier statement and your books (AP ledger)

Step 2: Run reconciliation

System automatically matches transactions using rules and AI

Step 3: Review results

See matched and unmatched transactions clearly

Step 1: Upload vendor statement and books

Start by uploading both datasets and telling the system what each column represents.

Vendor / Supplier statement

Upload CSV or Excel file

Select date column

Select identifier columns (invoice number, reference number, etc.)

Select amount column

Books (AP ledger)

Upload CSV or Excel file

Select date column

Select identifier columns

Select amount column

What this enables

The system understands how to compare both datasets correctly, even if formats differ.

Step 2: Data is cleaned and standardized

Before matching begins, CleverBalance prepares your data to ensure accurate comparison.

Dates are normalized into a standard format

Amounts are aligned for comparison

Invoice numbers and references are cleaned

Text fields are standardized

Both datasets are made comparable, even if they were exported from different systems.

Step 3: Transactions are matched using structured rules

CleverBalance first applies high-confidence matching rules to reconcile the majority of transactions.

1. Invoice / Reference Matching

Matches based on invoice number or reference

Validates amount

Considers date proximity

Best for clean, invoice-driven vendor reconciliation

2. Date + Amount Matching

Matches exact amounts

Allows small date differences (+/- 0-3 days)

Uses supporting description similarity

Best for cases where invoice numbers are missing or inconsistent

3. Split and Combined Matching

One invoice to multiple entries

Multiple invoices to single payment

Condition: total amount must match

4. Settlement & Group Matching

Batched payments

Net settlements after deductions

Credit notes and adjustments

Approach: grouped entries are matched when totals align

5. Relaxed Matching

Reduces dependency on exact dates

Uses identifier and narration similarity

Best for delayed entries or backdated postings

Step 4: AI resolves complex unmatched cases

After rule-based matching is completed, remaining unmatched transactions are analyzed using AI.

Complex combinations (1:N, N:1, M:N)

Missing or inconsistent invoice references

Vendor vs books description differences

Credit notes, reversals, and adjustments

Non-standard settlement patterns

Important principles

Prioritizes invoice/reference signals

Ensures amounts always balance

Allows reasonable date gaps

Avoids forced or incorrect matches

More transactions get matched without compromising accuracy.

Step 5: Review matched and unmatched transactions

Once matching is complete, results are presented in a clear, structured format.

Matched

Fully reconciled transactions and invoice-level or grouped matches.

Unmatched

Missing invoices in books, extra entries in books, amount mismatches, and items needing action.

Clear visibility

Faster review

Better control over reconciliation

Step 6: Download results and take action

Export reconciliation outputs for reporting, review, or corrections.

Outputs include

Matched transactions

Unmatched transactions

Structured Excel reports

Use cases

Internal review

Audit preparation

Vendor follow-ups

Book corrections

Why CleverBalance works better than manual reconciliation

Instead of relying only on strict rules or only on AI, CleverBalance combines both.

Rule-based matching

High accuracy

Predictable results

AI-based matching

Handles complexity

Covers edge cases

Combined result

Maximum coverage

High confidence

Minimal manual effort

Run your first vendor reconciliation in minutes

Upload your vendor statement and books, and see how quickly CleverBalance turns them into clear, actionable outputs.

No credit card and 14-day free trial