Department: Finance & Accounting Process Owner: AP Specialist Last Updated: January 2026
1. Overview and Purpose
Objective: To define procedures for reconciling the Accounts Payable aging report between your accounting software and accounts payable platform on a monthly basis. This SOP ensures all vendor liabilities are complete, accurately recorded, and consistent across systems, supporting month-end close and audit readiness.
2. Scope
This SOP applies to all vendor bills processed through your accounts payable platform and recorded in your accounting system. It includes:
- Running AP aging reports in both systems
- Comparing totals and vendor-level balances
- Identifying sync timing differences or data errors
- Resolving discrepancies prior to final close
3. Step-by-Step Process
3.1 Run AP Aging Reports in Both Systems
- In your accounts payable platform, run the AP Aging / Payables Detail report as of month-end date
- Export report to Excel and save to your designated month-end close folder
- In your accounting software, run A/P Aging Summary (or Detail) as of the same date
- Export to Excel and save in the same folder
Reviewer / Back-up: Accounting Coordinator
3.2 Compare System Totals
- Compare total AP balance in your accounts payable platform vs accounting software
- If totals match, proceed to vendor-level spot checks (Step 3.3)
- If totals do not match, calculate variance and begin discrepancy review (Step 3.4)
Reviewer / Back-up: Senior Accountant
3.3 Perform Vendor-Level Tie-Out
- Sort both exports by vendor name
- Compare balances vendor-by-vendor for:
- Large dollar vendors
- High-volume vendors
- Key program or capital project vendors
- Flag any vendor mismatches for investigation
Reviewer / Back-up: AP Specialist / Accounting Coordinator
3.4 Investigate Discrepancies
Common discrepancy sources to evaluate:
- Sync timing delays: Bill approved in accounts payable platform but not yet synced to accounting software
- Duplicate bills: Same invoice entered twice in either system
- Deleted / voided bills: Removed in one system but still open in the other
- Manual entries: Bills entered directly in accounting software instead of payment platform
- Payment timing differences: Paid in one system but still open in the other
Best Practice: Document your organization's sync timing expectations in your accounting policies manual. This helps distinguish normal timing lags from sync failures requiring IT intervention.
Steps:
- Trace each mismatch to source (invoice, approval log, sync record)
- Identify corrective action needed (re-sync, void duplicate, re-enter bill, etc.)
- Document the issue and resolution in the reconciliation workbook
Reviewer / Back-up: Senior Accountant / Controller
3.5 Correct or Document Resolving Items
- If discrepancy is a timing item (e.g., late sync), note it as a reconciling item and confirm it clears next month
- If discrepancy is an error, correct in the appropriate system:
- Fix coding
- Void duplicates
- Re-enter missing bills
- Re-run sync
- Update reconciliation file with final totals after corrections
Reviewer / Back-up: Controller
3.6 Final Review and Sign-Off
- Confirm final accounts payable platform AP total matches accounting software AP total
- Save reconciliation workbook in designated close folder
- Notify controller or finance director that AP aging reconciliation is complete
Reviewer / Back-up: Controller
4. Key Roles and Responsibilities
| Role | Responsibilities |
|---|---|
| AP Specialist | Runs reports, investigates discrepancies, corrects accounts payable platform data |
| Accounting Coordinator | Supports exports, tracing, and reconciliation workbooks |
| Senior Accountant | Reviews discrepancies and approves corrections |
| Controller / Finance Director | Final review and signoff |
5. Key Files and Systems
- Accounts Payable Platform AP Aging / Payables Detail Report – System AP source
- Accounting Software AP Aging Summary / Detail Report – GL AP source
- AP Aging Reconciliation Workbook (Excel) – Variance log and tie-out
- Accounts Payable Platform Sync Log – Evidence for timing discrepancies
- Designated Close Folder – Storage for all support documentation
6. Exceptions and Special Cases
- Major Program or Project Vendors: Must be reviewed even if totals match, due to high dollar risk.
- Off-Cycle Manual Payments: May create temporary mismatches if posted directly in accounting software. Document in your accounting policies manual when manual entries are permitted and require notation in reconciliation workbook.
- Prior-Period Adjustments: If a bill is corrected for a closed period, document clearly with journal entry reference.
- Vendor Credits: Ensure credit memos are reflected consistently in both systems.
7. Risks and Controls Summary
| Step | Risk | Control |
|---|---|---|
| 3.1 Run AP Aging Reports in Both Systems | Using mismatched report dates can create false variances and delay close | Both reports are pulled using the identical month-end as of date and stored together |
| 3.2 Compare System Totals | Unreconciled totals may indicate missing liabilities or duplicate postings | Total-level tie-out is required before any close signoff |
| 3.3 Perform Vendor-Level Tie-Out | Vendor-level differences may hide duplicate bills, missing syncs, or coding errors | Targeted vendor tie-out ensures key liabilities are aligned across systems |
| 3.4 Investigate Discrepancies | Unresolved discrepancies can result in misstated liabilities and audit exceptions | Every mismatch must be traced to a specific cause and resolved or documented |
| 3.5 Correct or Document Resolving Items | Carrying unresolved errors forward compounds GL inaccuracies | Errors are corrected before close; timing items are clearly flagged and tracked |
| 3.6 Final Review and Sign-Off | Closing without AP tie-out may leave liabilities incomplete | Controller review / signoff required prior to financial statement preparation |
