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Exception taxonomy

Every unmatched or ambiguous line gets exactly one bucket — then a concrete next action in AP. Timing and report-flavour mistakes are the #1 false “missing” traps.

bbf_anchor

Brought-forward check

The statement's opening (brought-forward) balance is checked against your prior-period open items. If they agree, the prior period is reconciled.

If balances agree — nothing to do. If they differ — investigate.

In your accounting system

  1. If the balances agree: no action needed — the prior period is reconciled
  2. If they differ: check your prior-period reconciliation for an explanation
  3. If you do not have a prior reconciliation, ask the supplier for a breakdown of the opening balance
  4. Document the difference on your exception log with the candidate items that might explain it

Do not

  • Create fake invoices to force the numbers to match
  • Ignore a difference — it may indicate a prior-period error
status_conflict

Your ledger says paid — still open on their statement

Your accounting system shows this invoice as paid, but the supplier's statement still lists it as open. A genuine settlement disagreement.

Confirm the payment cleared, then contact the supplier to apply it

In your accounting system

  1. Confirm the payment cleared your bank account
  2. Check that the payment was applied to the correct invoice in your accounting system
  3. Contact the supplier with the payment details (date, amount, bank reference) so they can apply it on their side
  4. Keep the remittance advice in case the supplier asks for it
  5. Recheck on the next statement — if still open after your policy's waiting period, escalate

Do not

  • Pay again because the statement still shows it as open
  • Enter a second bill for the same invoice
  • Treat as a missing invoice — your ledger already has it as paid
statement_only

On their statement — missing from your ledger

The supplier's statement lists an invoice that does not appear anywhere in your accounting system.

Request the invoice from the supplier, then enter the bill

In your accounting system

  1. List the statement lines with no match in your accounting system (reference, date, amount)
  2. Email the supplier requesting copies of those invoices
  3. When the PDFs arrive: enter the bills in your accounting system against the correct supplier and entity
  4. If the supplier says they were already sent: search by wrong supplier, wrong company, or parked inbox

Do not

  • Pay from the statement alone without a bill
  • Classify as missing before checking report type and timing
Sample email template
Subject: Statement reconciliation — invoices needed

Hi {vendor},

We are reconciling your statement dated {statementDate}. Please send PDF copies of the following invoices that appear on your statement but are not yet in our system:

{invoiceList}

Could you send these by {dueDate} so we can keep the reconciliation and next payment run on schedule?

Thank you,
{yourName}
amount_variance

Amount doesn't match

The same invoice reference appears on both sides, but the amounts differ — a short-payment, price variance, or credit applied on one side only.

Resolve the price, tax, or short-payment difference before clearing

In your accounting system

  1. Compare the statement amount to your bill: check for tax, freight, foreign exchange, or short-payment differences
  2. Attach supporting documentation (PO, receiving record, remittance advice)
  3. If your amount is wrong, correct it in your accounting system
  4. If the supplier's amount is wrong, contact them to arrange a credit note or correction
  5. Escalate to your AP lead or buyer per your company policy if the difference is material

Do not

  • Force a match on different amounts
  • Pay the statement amount without understanding the difference
Sample email template
Subject: Statement query — amount difference

Hi {vendor},

Your statement dated {statementDate} shows a different amount than our records for the following invoice(s):

{invoiceList}

Could you confirm whether this reflects tax, freight, or a partial payment by {dueDate}, so we can align our records?

Thanks,
{yourName}
part_paid

Part-paid — billed in full, partly settled

The statement shows the full invoice amount, but your accounting system shows only a smaller remaining balance. Part has already been paid or credited.

Confirm the partial payment cleared and the remaining balance is correct

In your accounting system

  1. Check your bank statements to confirm the partial payment cleared
  2. Verify the remaining balance in your accounting system is correct
  3. If the figures are correct, mark as matched on your reconciliation worksheet — the difference is explained
  4. If the remaining balance is wrong, correct it in your accounting system

Do not

  • Pay the full amount again — only the remaining balance is owed
  • Ignore the difference without confirming the partial payment
duplicate_statement

Charged twice on the statement

The same invoice reference appears more than once on the supplier's statement — possible double-billing.

Query the duplicate with the supplier — pay only once

In your accounting system

  1. Confirm both lines on the statement have the same reference and amount
  2. Contact the supplier to confirm which line is correct (or if one is an error)
  3. Pay only once — do not enter a second bill in your accounting system
  4. Document the query on your exception log

Do not

  • Pay both lines
  • Enter a second bill in your system for the duplicate
credit_on_account

Credit on account — not yet allocated

A credit note or payment in your accounting system cannot be tied to a specific invoice on the statement.

Allocate the credit to the correct invoice(s) in your accounting system

In your accounting system

  1. Identify which invoice(s) the credit or payment should be applied to
  2. If you do not have the credit memo document, request it from the supplier
  3. Enter or apply the credit against the correct invoice(s) in your accounting system
  4. Plan the next payment run to reflect the reduced balance

Do not

  • Ignore the credit and overpay
  • Apply the credit to the wrong invoice(s) just to clear it
Sample email template
Subject: Credit memo request — statement reconciliation

Hi {vendor},

Please send credit memo documentation for: {invoiceList}

If we could receive it by {dueDate}, we'll apply it before the next payment run.

Thanks,
{yourName}
ambiguous_match

Ambiguous — can't safely match

A statement line's amount and date match more than one of your invoices, and there is no reference number to break the tie.

Identify the correct invoice — do not guess

In your accounting system

  1. Check purchase order numbers, goods receipt records, or delivery notes to identify the correct invoice
  2. If still unclear, contact the supplier to confirm which invoice the statement line refers to
  3. Once identified, record the match in your accounting system or reconciliation worksheet
  4. If you cannot identify the correct invoice, leave it open and document it on the exception log

Do not

  • Guess — picking the wrong one could hide a real discrepancy
  • Match solely on amount
date_mismatch

Date differences

The invoice reference and amount match exactly, but the dates do not agree — even by one day.

Check which date is correct, then correct if needed

In your accounting system

  1. Compare the original invoice PDF to see which date is correct
  2. If your date is wrong, correct it in your accounting system
  3. If the supplier re-dated the invoice, document it and keep both dates for reference
  4. Once resolved, mark as matched on your reconciliation worksheet

Do not

  • Ignore the date difference — it means the item is not fully reconciled
  • Change the date without checking the original invoice
not_open_maybe_paid

Not open in your ledger — may already be paid

An invoice on the statement does not appear in your open-payables report, which only lists unpaid invoices. It may have already been paid.

Check whether the invoice was already paid before chasing

In your accounting system

  1. Check your paid invoices list or bank statements to confirm whether the payment was made
  2. If it was paid — no action needed, the invoice was correctly excluded from your open-items report
  3. If it was not paid — enter the bill in your accounting system and arrange payment
  4. To avoid this confusion in future, send a full transaction list (including paid items) instead of an aged payables report

Do not

  • Chase the vendor about a 'missing' invoice before checking whether it was already paid
  • Enter a second bill if the first one was already paid
out_of_period

Outside the period this report covers

A statement line is dated outside the date range covered by your accounting system report.

No action — outside the scope of the report you provided

In your accounting system

  1. No action needed for this item — it is dated outside the period your accounting report covers
  2. If you want to include it in the reconciliation, send a wider report that covers this period
  3. Document on the exception log as 'outside period' if your process requires it

Do not

  • Chase the vendor about a discrepancy — there is none
  • Enter a new bill just because it appears on the statement
ledger_only

In your ledger — missing from their statement

You have an open invoice in your accounting system that does not appear on the supplier's statement.

Check timing first, then query the omission with the supplier

In your accounting system

  1. Check whether the invoice was entered in your accounting system after the statement was prepared — if so, it is a timing difference and will appear on the next statement
  2. Confirm the statement period and entity match your invoice
  3. Check for open disputes, debit notes, or hold flags on the bill
  4. If it is not a timing difference, email the vendor with your invoice reference asking why it is omitted
  5. Document on the exception log — do not delete the bill just because the statement is silent

Do not

  • Write off the bill without evidence
  • Treat aged-open silence as proof the bill is wrong
Sample email template
Subject: Statement query — our open invoices not listed

Hi {vendor},

Your statement dated {statementDate} does not list the following invoices that remain open in our system:

{invoiceList}

Could you confirm status by {dueDate} (omitted in error, disputed, or timing)?

Thanks,
{yourName}
ledger_out_of_period

In your ledger — outside the period

An open invoice in your accounting system is dated outside the period the report covers, or after the statement's latest date.

No action — outside the reconciliation window

In your accounting system

  1. No action needed — the item is dated outside the period being reconciled
  2. It will be included when you reconcile the period it belongs to
  3. Document on the exception log as 'outside period' if your process requires it

Do not

  • Contact the vendor about a discrepancy — there is none
duplicate_ledger

Recorded twice in your ledger

The same invoice appears more than once in your accounting system — likely a duplicate posting.

Remove or reverse the duplicate posting in your accounting system

In your accounting system

  1. Freeze payment on both entries immediately
  2. Compare the two entries — check the PO, receiving record, and invoice PDF to determine which is correct
  3. If neither has been paid: void or cancel the duplicate entry in your accounting system
  4. If both have been paid: this is a duplicate payment — request a refund or credit from the supplier. Controller sign-off is recommended for material amounts

Do not

  • Pay both entries
  • Assume the same amount means the same invoice without checking
fuzzy_ref

Reference doesn't match (amount agrees)

The statement and your invoice have the same amount, but the reference numbers are formatted differently.

Confirm the references are the same invoice

In your accounting system

  1. Compare the cleaned-up reference numbers — the engine removed prefixes, suffixes, and formatting
  2. If they are the same invoice, mark as matched on your reconciliation worksheet
  3. If you want to avoid this in future, standardise the reference format in your accounting system to match the supplier's format

Do not

  • Assume different formatting means a different invoice
  • Change the reference without confirming
status_conflict_timing

Timing differences around the closing date — no action needed

Your ledger shows these as paid, and each invoice is dated around the supplier's closing date — ordinary settlement lag, not a dispute.

No action — ordinary settlement lag, not a dispute

In your accounting system

  1. No action needed — the invoice date is close to the statement's closing date, so the payment is in transit
  2. Keep the remittance advice in case the supplier asks for it
  3. Recheck on the next statement — the item should no longer appear as open
  4. Document on the exception log as 'timing' if your process requires it

Do not

  • Pay again — the payment is in transit, not missing
  • Email requesting invoices you already paid
  • Treat as a missing invoice or a dispute
many_to_one

Consolidated — one statement line, several invoices

A single line on the statement equals the sum of several of your invoices. Resolved automatically.

No action — resolved automatically

In your accounting system

  1. No action needed — the engine confirmed one statement line equals the sum of several of your invoices
  2. Review the components shown for transparency if you wish
  3. Mark as matched on your reconciliation worksheet

Do not

  • Enter a new invoice to match the consolidated line
  • Contact the vendor about a discrepancy — there is none
one_to_many

Split — one invoice, several statement lines

One of your invoices appears as several lines on the statement. The total matches. Resolved automatically.

No action — resolved automatically

In your accounting system

  1. No action needed — the engine confirmed one of your invoices equals the sum of several statement lines
  2. Review the components shown for transparency if you wish
  3. Mark as matched on your reconciliation worksheet

Do not

  • Enter new invoices for each statement line
  • Contact the vendor about a discrepancy — there is none
date_corroborated

Matched on amount + date

The reference was missing or different, but the amount and date line up within 7 days. Treated as matched.

Matched on amount and date — verify if you want, then tick

In your accounting system

  1. Review both references shown — the match was made on amount and date, not reference number
  2. If you are satisfied, mark as matched on your reconciliation worksheet
  3. If you want to improve future matching, add the reference number to the statement line in your records

Do not

  • Force a reference match without confirming
  • Leave it unmatched when amount and date clearly agree
clean_match

Fully reconciled

The invoice reference, amount, and date all agree between the statement and your accounting system.

Tick the pair and move on

In your accounting system

  1. Mark the invoice as matched on your reconciliation worksheet
  2. No accounting system change needed — both sides already agree

Do not

  • Re-enter the bill
  • Email the vendor about an already-matched line
new_vendor_opening

New-vendor opening balance (course-only)

This is the first statement from a new vendor and it shows a nonzero opening balance. The opening balance should be zero — a nonzero balance needs a breakdown, not invented missing invoices. Not detected by the software.

First statement from this vendor — the opening balance should be zero

In your accounting system

  1. Confirm this is genuinely the first statement received from this vendor (check vendor master or prior reconciliation history)
  2. If the opening balance is zero: no action — proceed to match the activity lines
  3. If the opening balance is nonzero: request a breakdown from the vendor before accepting it as a carry-forward

Do not

  • Accept a nonzero opening balance from a new vendor without a breakdown
  • Treat it as a carry-forward when there is no prior reconciliation to roll forward
document_type_mismatch

Document type mismatch (course-only)

The amount and date agree, but one side is an invoice and the other is a credit note. These are different document types, not a formatting variation. Not detected by the software.

Check the source document, then correct the AP document type

In your accounting system

  1. Compare the supplier document with the AP entry — confirm whether it is an invoice or a credit note
  2. If AP recorded a supplier credit note as an invoice, reverse or void the incorrect invoice entry
  3. Record the credit note with the correct sign and apply it to the relevant invoice when the supporting records establish the allocation
  4. Re-run the reconciliation after the AP correction

Do not

  • Treat equal amount and date as proof that an invoice and a credit note are the same document
  • Apply the credit to an unrelated invoice just to clear the exception
dispute_on_hold

Dispute / hold (course-only)

You already know there is a disagreement with the vendor over this line. Not detected by the software — the software does not know about your disputes.

Document the hold — do not clear as matched

In your accounting system

  1. Flag the bill as disputed or on hold in your accounting system
  2. Log the reason, owner, and target resolution date on the exception log
  3. Exclude the bill from payment until the dispute is resolved
  4. When resolved: remove the hold flag, update the exception log, and schedule for payment

Do not

  • Tick as matched to make the reconciliation look clean
  • Promise a payment date before the dispute is resolved
Sample email template
Subject: Statement query — invoice on hold

Hi {vendor},

The following invoice from your statement dated {statementDate} is currently on hold pending resolution:

{invoiceList}

We expect to have this resolved by {dueDate} and will update you as soon as it can be scheduled for payment.

Thanks,
{yourName}
vendor_data_issue

Vendor data issue (course-only)

The statement is for the wrong legal entity, wrong currency, or has an implausible statement date. Not detected by the software.

Stop — get the correct statement first

In your accounting system

  1. Verify the legal entity, currency, and statement date with the vendor
  2. Request a corrected statement before doing any further matching
  3. Do not force matches across the wrong entity or currency

Do not

  • Reconcile the wrong company's statement
  • Guess the correct entity or currency instead of asking
Sample email template
Subject: Statement query — entity/currency check

Hi {vendor},

Before we complete our reconciliation of the statement dated {statementDate}, could you confirm the legal entity and currency it covers by {dueDate}? We want to make sure we are matching it against the correct records.

Thanks,
{yourName}

Statement Zen Academy TeamBuilt from Statement Zen's own vendor statement reconciliation engineering and casework — pending Michael's named byline commitment (spec.md section 7). · Last updated