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Vendor accounts reconciliation for a personal care products company

Engagement: The client was the Indian subsidiary of a personal care multinational corporation with manufacturing operations and a vendor base of about 1,000 vendors. Their vendor accounts had not been reconciled ever since the commencement of operations. This was making it difficult for the Accounts Payable team to generate a payment list of due invoices directly from the ERP and the task of picking invoices for payment had to be done manually for every payment cycle. The lack of reconciliation was a serious control and audit issue. The client needed vendor accounts to be reconciled and ideally to have all vendors’ balances confirmed by them.

The objective of the project was to get balance confirmations from vendors. The interim deliverable was reconciliation statements between client and vendor accounts along with recommended actions for clearing open items.


  • Vendors assigned to SKP in batches
  • Transactions dump from SAP
  • Vendors’ contact details from client to SKP
  • Emails from SKP requesting clients for statements
  • Two phone call follow-ups with vendors by SKP to obtain statements
  • Macros to match transactions between client books and vendor statements
  • Eyeballing and investigation of unmatched transactions for second-stage matching
  • Macros to compile the final reconciliation
  • Submission for client review and clearance of client action items
  • Weekly meeting with the client to discuss open items in completed reconciliations
  • Sending to vendor for clearance of vendor open items and balance confirmation
  • Tracking status of each vendor on SharePoint

Weekly reporting to the client about:

  • Vendors not responding to follow-up calls
  • Incorrect contact details of vendors
  • Status of reconciliations

Value Delivered
By developing macros for primary matching and tabulation of reconciliations, we made the process efficient and freed up accountants’ time to actually focus on the secondary matching and investigation of open items. Our team also took full responsibility of following up with the vendors to get statements and closing open items.  We delivered reconciliations along with recommended actions for clearing open items.