Closing balance first
Add up the lines on the statement and compare the total with the closing balance. A gap means a line is missing from your reading or from the statement itself, so find it before matching anything. Xero users are still asking for a supplier-statement function, so this check is yours to run or to buy.
Six kinds of difference
This list is authored for this guide, not taken from a vendor. Each statement line ends in a match or in one of six kinds of difference.
- Missing from the ledger: the supplier billed it and you have no bill.
- Missing from the statement: you have a bill the supplier does not show.
- Different amount: the same reference with another amount.
- Different date: the same item in another period.
- Different reference: probably the same item, but not provably.
- Unapplied credit: a credit note on the statement that is not applied to a bill.
What to do with each
Query the supplier for the first two kinds, and check the bill for the next three. For an unapplied credit, check that it exists in your ledger before you pay the next invoice. Keep the page reference for every line so a supplier can see what you saw.
Which paid job fits
The statement check does this for one month and up to 15 suppliers with a labelled test, and a monthly version repeats it. It lists differences and drafts query lines. It is not an accountant's reconciliation.
Sources and limits
- Xero Product Ideas: supplier statement against the detailed ledger Checked 2026-10-12.
- The request was posted on 21 Oct 2025, has 31 votes, 11 comments and the status "Gaining Support"; a comment quotes a 2021 Xero Community Manager reply that there was no supplier-statement function, and the current admin reply points to the supplier bill activity report.
- Invoice data extraction: Xero supplier statement reconciliation Checked 2026-10-12.
- A vendor blog describes the manual supplier-statement workflow in Xero and the exception types that turn up.
- Dext: supplier statements reconciliation Checked 2026-10-12.
- Dext offers supplier statement extraction as an add-on from £16.50 a month or £0.40 per document, and says it is included on every plan with credits; its page claims over 99% accuracy without stating a method.