How to reconcile a supplier balance payment
Rebuild the amount due from the agreed payment triggers, then match each order line to goods status, invoices, allocated deposits and earlier payments. Apply documented adjustments and explain every difference before authorisation. Ask Cambridge China Bridge to help reconcile the request with factory records.
Start with the agreed payment trigger
Collect the purchase order, accepted quotation, payment schedule and agreed amendments. Record what makes each payment due: production progress, inspection approval, dispatch or another agreed event. A request labelled “balance” does not show that its trigger has been met. Do not assume that unfinished goods are excluded if the agreed payment is tied to a different milestone.
Identify whether your seller is the factory or a UK sourcing company, and reconcile against that seller's agreement. This guide addresses the amount requested; use our pre-payment checks for the payee, goods and shipment documents.
Separate goods by status
Create a reconciliation sheet with the order reference, product, batch, ordered quantity, requested quantity, agreed price, goods status, payment trigger and supporting document. Separate finished and approved goods, unfinished goods, rejected goods, replacements and goods already paid for. Ask our staff in China to check unclear factory status against production and inspection records.
Use the inspection guide to establish what the inspection covers. Keep rejected goods linked to the rejection record and proposed remedy. A replacement should reference the original rejected line so that it does not quietly become an additional sale.
| Status | Evidence to match | Reconciliation action |
|---|---|---|
| Finished and approved | Batch record and inspection approval | Check whether the agreed payment trigger is met |
| Unfinished | Production status and payment schedule | Identify whether a progress payment is agreed |
| Rejected or awaiting rework | Rejection record and agreed remedy | Show the disputed amount separately |
| Previously paid | Payment evidence and allocation | Remove duplicate charges from the proposed payment |
| Replacement | Original line and replacement agreement | Check whether any additional charge was agreed |
Trace deposits and earlier payments
Match each deposit and subsequent transfer to the seller's receipt or account statement, using your bank record as supporting evidence. GOV.UK distinguishes an invoice from a receipt: a receipt acknowledges payment. An invoice marked “deposit” alone does not establish that the transfer reached the seller.
Record the currency, amount sent, amount acknowledged and order allocation. Explain bank charges or currency differences separately. For a split shipment, get written agreement on how the deposit is allocated between shipped and remaining goods. Do not deduct the whole deposit again from a later request, or accept a balance that ignores an earlier allocated payment.
Document adjustments and explain the difference
Start with the charges covered by payment triggers already met. Deduct deposits and earlier payments allocated to those charges, then apply agreed credits, discounts and additions. Compare the result with the supplier's request. List each difference by order line and document reference rather than hiding it in a revised total.
Ask for a corrected request and invoice, or an appropriate adjustment document, where the records disagree. Distinguish a price reduction, refund, rework arrangement and credit against a future order. Use our supplier credit and refund guide for tracking those outcomes. A proposed claim should stay separate from an agreed credit.
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Authorise a specific amount against specific records
Give the approver the reconciliation sheet, agreed terms, goods-status evidence, invoices, payment records and adjustment confirmations. State the proposed payment, currency, invoice references and remaining unpaid items. If any difference is unresolved, return it for clarification before authorising the request. Keep the approved version with the eventual transfer record. For a bank-held transfer, see our guide to evidence for bank-held supplier payments.
If you propose paying only the reconciled portion, ask the seller to confirm the allocation and treatment of the disputed remainder in writing. Do not assume a partial transfer settles the disagreement or permits withholding under the contract. Our UK seller payment-dispute guide covers that separate question.
Frequently asked questions
Should unfinished goods be included in the balance?
Check the agreed trigger. A progress payment may cover unfinished goods; a payment tied to approved finished goods needs evidence of that approval. Ask the seller to identify the clause and affected lines.
How do I stop paying for the same goods again?
Match the requested lines to earlier invoices, bank records and the seller's payment allocations. Link replacement goods to the original rejected lines and confirm any additional charge in writing.
Can I deduct rejected goods from the payment?
Record the disputed amount separately and seek written agreement on the remedy and payment treatment. Do not treat your proposed deduction as an agreed credit or assume withholding is permitted.
What should I ask for if the balance does not match?
Request a line-by-line explanation, deposit and payment allocations, supporting goods-status records and documented adjustments. Ask for a corrected payment request that matches the agreed reconciliation.