Supplier Statements (Transactions) — Complete User Guide — Two Accounts Web

Comprehensive guide for generating, analysing, and understanding the Supplier Statements (Transactions) report — a per-supplier statement showing all transactions affecting Accounts Payable with running balance

Table of Contents

1. What Is the Supplier Statements (Transactions) Report?
   • Purpose and Structure
   • vs Aged Payables
2. Enabling from the Customize Menu
3. Field-by-Field Guide
   • Report Header Fields
4. Settings Configuration
   • Suppliers
5. Creating a Supplier Statement Report
6. How the Supplier Statement Is Calculated
   • Transaction Reads
   • Opening Balance Calculation
   • Period Transactions
   • Running Balance
   • Transaction Type Descriptions
   • Sign Convention
7. Drill-Down and Actions
8. Sample Data and Report Output
   • Sample Setup
   • Supplier Statement Output
   • Verification of Calculation
9. Common Issues and Solutions
10. Accounting Regulation Compliance

1. What Is the Supplier Statements (Transactions) Report?

The Supplier Statements (Transactions) report generates a detailed statement for each supplier showing every transaction that affects their Accounts Payable balance over a specified period. It includes an opening balance, all purchase invoices, payments, debit notes, refunds, and journal entries — with a running balance after each transaction.

This is the report to use when reconciling supplier accounts or when a supplier requests a statement of their account activity.

1.1 Purpose and Structure

The report shows for a single supplier:

• Opening Balance — the outstanding balance carried into the period
• Purchase Invoices — invoices received from the supplier (shown in Credit column, as AP increases)
• Payments — payments made to the supplier (shown in Debit column, as AP decreases)
• Debit Notes — adjustments received from the supplier (shown in Credit column)
• Refunds — refunds received from the supplier (shown in Debit column)
• Journal Entries — manual adjustments to the supplier's AP (shown in Debit or Credit)
• Running Balance — cumulative balance after each transaction, shown as Cr or Dr
• Closing Balance — the outstanding balance at the end of the period
• Totals — total debits, total credits, opening balance, and closing balance

1.2 vs Aged Payables

2. Enabling from the Customize Menu

The Supplier Statements (Transactions) report appears under:

• Reports → Suppliers → Supplier Statements (Transactions)

The report is only visible when the Suppliers tab is enabled in Customize Menu. No additional toggle is needed.

3. Field-by-Field Guide

3.1 Report Header Fields

Location: Reports → Suppliers → Supplier Statements (Transactions) → New Report

4. Settings Configuration

4.1 Suppliers

Location: From Suppliers Menu

Supplier records store the contact information, address, email, currency, and control account assignment. Key fields used in the statement:

• Name — statement recipient name
• Address — statement recipient address
• Email — used when emailing the statement
• Code — optional supplier reference
• Currency — statement amounts shown in the supplier's currency

5. Creating a Supplier Statement Report

1. Go to Reports → Suppliers → Supplier Statements (Transactions)
2. Click New Report
3. Enter the From Date (period start)
4. Choose the To Date — Today or Custom
5. If Custom, select the Custom Date
6. Optionally select a Theme
7. Click Save
8. The report generates a list of all suppliers. Click View next to any supplier to see their statement

6. How the Supplier Statement Is Calculated

6.1 Transaction Reads

The system loads reads General Ledger transactions up to the statement end date where:

• The GL account is an Accounts Payable account
• The transaction's supplier matches the selected supplier
• The date is on or before the statement end date

Transactions are ordered by date, with credit entries shown before debit entries on the same date (AP is credit-normal, so credits represent increases in what is owed).

6.2 Opening Balance Calculation

Opening Balance = Sum of (account currency amount)
    for ALL transactions where:
    • Date is BEFORE the statement From Date
    OR the entry is an Opening Balance Entry (regardless of date)

If the opening balance is non-zero, it is shown as the first row of the statement.

6.3 Period Transactions

All transactions with a date on or after the From Date and not flagged as opening balance entries are shown individually. Each transaction appears as a row with:

• Date — the transaction date
• Description — the transaction type and reference
• Debit — positive amounts (payments, refunds received — decreases AP)
• Credit — negative amounts shown as positive (invoices, debit notes — increases AP)
• Balance — running balance after this transaction, shown as Cr or Dr

6.4 Running Balance

Running Balance = Opening Balance + Sum of all transaction amounts
    for transactions up to and including this row

For AP (credit-normal), a positive running balance means Cr (the business owes the supplier). A negative running balance means Dr (the supplier owes the business).

6.5 Transaction Type Descriptions

6.6 Sign Convention

Accounts Payable has a credit-normal balance. This means:

• Invoices increase AP → credit entries (negative amounts) → shown in Credit column
• Payments decrease AP → debit entries (positive amounts) → shown in Debit column
• Cr balance = business owes supplier (normal)
• Dr balance = supplier owes business (overpayment)

7. Drill-Down and Actions

From the supplier listing, clicking View on any supplier opens their detailed statement. From the per-supplier statement, the following actions are available:

Each statement can be used for reconciliation with supplier statements received from vendors.

8. Sample Data and Report Output

8.1 Sample Setup

Supplier X has the following transactions affecting their Accounts Payable during January 2026:

Opening Balance (1 January 2026)

Transactions During January 2026

8.2 Supplier Statement Output

Supplier Statement — Supplier X
ABC Trading
123 Business Road

Statement Period: 1-Jan-2026 to 31-Jan-2026

                                                    Debit     Credit    Balance
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
1-Jan-2026  Opening Balance                                                  40,000 Cr  ¹

5-Jan-2026  Invoice #2001 — Office Supplies                    57,500        97,500 Cr  ²
10-Jan-2026 Payment 5 — Payment for Dec invoice     40,000                  57,500 Cr  ³
15-Jan-2026 Invoice #2002 — Consulting Services                115,000       172,500 Cr  ⁴
20-Jan-2026 Debit Note #3001 — Returned items                   11,500       184,000 Cr  ⁵
25-Jan-2026 Payment 6 — Payment for Invoice #2001   50,000                 134,000 Cr  ⁶
28-Jan-2026 FX adjustment on AP                                  2,000       136,000 Cr  ⁷
                                                       ───────   ───────    ─────────
Opening Balance:                                                              40,000 Cr
Total Debits:                                         90,000
Total Credits:                                                 186,000
Closing Balance:                                                        136,000 Cr  ⁸

Notes:

1. Opening Balance: 40,000 Cr — the outstanding AP balance before the statement period.
2. Invoice #2001 (5-Jan): Credit 57,500 (50,000 net + 7,500 VAT). AP increases. Running: 40,000 + 57,500 = 97,500 Cr.
3. Payment 5 (10-Jan): Debit 40,000 — payment made. AP decreases. Running: 97,500 − 40,000 = 57,500 Cr.
4. Invoice #2002 (15-Jan): Credit 115,000 (100,000 net + 15,000 VAT). AP increases. Running: 57,500 + 115,000 = 172,500 Cr.
5. Debit Note #3001 (20-Jan): Credit 11,500 (10,000 net + 1,500 VAT reversal). AP increases (reduces the expense). Running: 172,500 + 11,500 = 184,000 Cr.
6. Payment 6 (25-Jan): Debit 50,000 — payment made. AP decreases. Running: 184,000 − 50,000 = 134,000 Cr.
7. JE FX Adjustment (28-Jan): Credit 2,000 — FX rate change increases AP. Running: 134,000 + 2,000 = 136,000 Cr.
8. Closing Balance: 136,000 Cr = 40,000 (OB) + 186,000 (credits) − 90,000 (debits) ✓.

8.3 Verification of Calculation

OPENING BALANCE:
  Pre-period transactions + OB entries:          40,000 Cr ✓

DEBITS (positive amounts — decrease AP):
  Payment 5:           40,000
  Payment 6:           50,000
  Total Debits:        90,000 ✓

CREDITS (shown as positive — increase AP):
  Invoice #2001:       57,500
  Invoice #2002:      115,000
  Debit Note #3001:    11,500
  JE FX Adjustment:     2,000
  Total Credits:      186,000 ✓

CLOSING BALANCE:
  Opening:             40,000 Cr
  + Credits:         +186,000
  − Debits:           −90,000
  = Closing:          136,000 Cr ✓

RUNNING BALANCE VERIFICATION:
  After opening:         40,000 Cr ✓
  After Invoice #2001:   97,500 Cr ✓
  After Payment 5:       57,500 Cr ✓
  After Invoice #2002:  172,500 Cr ✓
  After Debit Note:     184,000 Cr ✓
  After Payment 6:      134,000 Cr ✓
  After JE Adjustment:  136,000 Cr ✓

DR = CR VERIFICATION (underlying transactions):
  Opening Balance:        Dr RE 40,000 / Cr AP 40,000 ✓
  Invoice #2001:          Dr Exp 50,000 + Dr Tax 7,500 = Cr AP 57,500 ✓
  Payment 5:              Dr AP 40,000 / Cr Cash 40,000 ✓
  Invoice #2002:          Dr Exp 100,000 + Dr Tax 15,000 = Cr AP 115,000 ✓
  Debit Note #3001:       Dr AP 11,500 / Cr Exp 10,000 + Cr Tax 1,500 ✓
  Payment 6:              Dr AP 50,000 / Cr Cash 50,000 ✓
  JE FX Adjustment:       Dr FX Loss 2,000 / Cr AP 2,000 ✓

  Statement closing balance: 136,000 Cr = GL AP balance ✓

9. Common Issues and Solutions

9.1 Statement Shows No Transactions

Cause: No transactions affecting Accounts Payable exist for this supplier within the selected date range.

Solution: Broaden the date range. Verify that the supplier has purchase invoices or payments in the period.

9.2 Opening Balance Does Not Match Prior Statement

Cause: Transactions were posted with dates before the statement From Date after the prior statement was generated.

Solution: The opening balance is dynamically calculated — if transactions were added after the prior statement, the opening balance will differ.

9.3 Statement Shows Debit Balance

Cause: The supplier has been overpaid — total payments and refunds exceed total invoices and debit notes. The running balance shows "Dr" instead of "Cr".

Solution: A debit balance means the supplier owes the business. Request a refund or apply the overpayment to future invoices.

9.4 Credit and Debit Columns Seem Reversed vs Customer Statement

Cause: AP is credit-normal — invoices increase AP (Credit column). Payments decrease AP (Debit column). This is the opposite of AR where invoices increase AR (Debit column).

Solution: This is correct. The statement follows AP's credit-normal convention. Invoices appear in Credit, payments in Debit.

9.5 Description Shows Incomplete Text

Cause: The description is built from the transaction's reference and description. If the original transaction was created without a description, only the transaction type and reference are shown.

Solution: Add descriptions to transactions at creation for more informative statements.

9.6 Transaction Does Not Appear

Cause: The transaction may not be linked to the supplier's Accounts Payable account, or the transaction type does not affect AP.

Solution: Check that the transaction's GL account is an Accounts Payable account. Only AP-linked transactions are shown.

10. Accounting Regulation Compliance

10.1 IAS 1 — Presentation of Financial Statements

10.2 IFRS 9 — Financial Instruments

10.3 DR = CR Verification

Sample Data Verification:

  Opening Balance:                            40,000 Cr
  + Total Credits:                          186,000 Cr
  − Total Debits:                            90,000 Dr
  = Closing Balance:                        136,000 Cr ✓

  Running balance verified after each transaction ✓
  Closing balance matches GL AP balance ✓
  Each underlying transaction DR = CR ✓

End of Supplier Statements (Transactions) Guide