What supplier statement reconciliation is
Suppliers send a statement each month listing the invoices, credits and payments they have on your account. Vendor statement reconciliation compares that list with your own accounts payable ledger, so you find an invoice you never received before it becomes an overdue notice, a payment that went to the wrong invoice, or a bill you entered twice and might pay twice.
Done by hand it means ticking statement lines against ledger lines, supplier by supplier. It is slow because the statements come in every supplier's own layout.
If you use Xero
Xero reconciles your bank feed, but it doesn't match your bills against a supplier's statement for you; Xero users have asked for exactly that on Xero's product ideas forum (as checked on 2026-10-11). Until our read-only Xero connector is ready (coming soon, not available yet), export your payables or supplier transactions from Xero, or any accounting system, as CSV or Excel and add it next to the statements.
How it works
- Add the statements and your ledger. Statements as PDFs, scans, photos or spreadsheets; the ledger as a CSV or Excel export. Choose "Supplier statement reconciliation" from the ready-made work orders, or describe what you want in your own words.
- The Queen plans it once. A top model (Claude Opus) looks at a few samples and writes the instructions for reading each layout, the checks, and the matching rules. The plan is kept, so next month's run skips this step.
- Cheap models read, code checks. Every statement has to balance: opening balance plus invoices minus credits and payments must equal the closing balance, so a misread amount, a flipped sign or a skipped line is caught. A reading that fails is read again by a stronger model.
- Code does the matching. Statement lines are compared with your ledger in code, not by a model: missing invoices, different amounts, duplicates.
- You get the list. Every difference, ready to download as Excel or a Word report, with a record of which checks each statement passed.
Measured on a year of statements
| A year of supplier statements against the ledger | Exact? | AI cost |
|---|---|---|
| Claude Opus alone, 16,000-token answer allowance | no answer | $0.98 |
| Claude Opus alone, 64,000-token answer allowance | yes | $1.00 |
| Yellowjacket, the Queen planning the job herself (first time) | yes | $0.148 |
| Yellowjacket with a stored plan (three runs) | yes | $0.014-$0.051 |
| Yellowjacket, the same question asked again | yes | $0.00 |
Generated test data with exact known answers: 120 monthly statements from 10 suppliers in 3 layouts (about 2,900 transaction lines, 165,000 tokens) against a ledger export of 1,957 rows, with 6 invoices missing from the ledger, 6 keyed with transposed digits and 4 entered twice. The $0.148 run is $0.103 of planning, paid once per kind of job, and $0.046 of reading. Costs are what the AI models billed us, not your price. Real suppliers use far more than three layouts.
What it costs
You pay 35% of what the cheapest top AI model would charge to do the same job alone, or our AI cost plus 25% when that is higher, and a planned job never costs more than the cheapest top model would. You see the price before it runs. Long statements are where the saving is largest: Claude Opus alone needed a 64,000-token answer to do this job, and with a 16,000-token limit it produced nothing and still cost $0.98.
Questions people ask
What is vendor statement reconciliation?
Checking a supplier's (vendor's) statement of account against your own accounts payable ledger, so every invoice, credit and payment on their side matches yours, and finding the ones that don't.
Can Xero reconcile supplier statements automatically?
Not on its own as of 2026-10-11: Xero reconciles bank feeds, and its users have asked for supplier statement matching on Xero's product ideas forum. You can export your payables from Xero as CSV or Excel and reconcile them against the statements on Yellowjacket.
Does Yellowjacket connect to Xero?
Not yet. A read-only Xero connector is coming soon. Today you add a CSV or Excel export of your ledger.
What does it find?
Invoices on a statement but missing from your ledger, invoices whose amounts differ (for example transposed digits) and invoices entered twice. In our test with a year of statements it found all of them exactly.
Is my supplier data private?
Names, emails, addresses and account numbers are swapped for placeholders before any AI model sees them and put back in your results; amounts, dates and invoice numbers are kept because the checks need them.