Vendor reconciliation is matching your own record of a vendor’s bills and payments with the vendor’s statement of account, so that both sides agree on what has been billed, paid and is still due.
Differences arise from bills not yet entered, payments made but not credited, returned goods, rate differences and bills recorded in the wrong month. Left alone they pile up until nobody is sure what is owed.
For GST, it also means matching vendor invoices with what the vendor has filed, which appears in your GSTR-2B, so that input tax credit is claimed only on bills that appear.
Doing it monthly, with a party statement from each major vendor, keeps disputes small.
ARC PEM keeps a vendor ledger with GST, a pending payments dashboard, GSTR-2B reconciliation, and lets you share a party statement on WhatsApp with the vendor to confirm balances. See all features.
ARC PEM tracks your BOQ, vendor bills, labour attendance, contractor ledgers and GST across every project — live for the whole firm, on any phone or computer.
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