Balance confirmation in SAP Business One

A balance confirmation makes it possible to check the correct amount of receivables and payables to your business partners. This task can be automated with the Versino Financial Suite.

Versino Financial Suite for SAP Business One Finance

Purpose of Balance Confirmation

There may be discrepancies with the respective Business partner need to be clarified. It may also be necessary to post individual value adjustments. With the confirmation of balances, the issuing debtor or creditor recognizes the balance at a certain point in time, so that subsequent complaints in this regard are meaningless.

The different shapes

– Balance Confirmation

In the balance confirmation, the business partner is informed in detail of the amounts to be confirmed. You ask for the corresponding reconfirmation, regardless of whether there should be differences or not.

– balance notification

When notifying balances, the business partner is also informed in detail of the amounts that they have to confirm. On the other hand, however, feedback is only requested if it does not agree with the balance notified.

– Balance request

With the balance request, you ask your business partner to transmit the balance of the account according to their accounting.

Legal background

With reference to the so-called commercial practice, confirmations of balances are a promise or acknowledgement of debt. This is also recognised by the BGB in § 782 so. Even without a response, a balance so communicated will be recognized by civil courts.

requirements of the auditors

Under the special circumstances, the tax consultant or auditor specifies to the debtors and creditors whether confirmation of balances must be requested. In practice, this is done according to special selection criteria (random samples, maximum values, anomalies) using the jointly agreed balance lists.

Are balance confirmations a must?

In principle, there is no obligation to obtain third-party confirmations. You have to answer the question of whether to obtain the balance confirmations based on professional judgment. Above all, it should be ensured that a possible check can be carried out without any risks even without a confirmation of the balance.

discrepancies in the balances

Reasons for a discrepancy in the balances and any associated incorrect information can have their origin on both sides of the business relationship. For example, postings may have been made for different periods. The claim was settled before the balance confirmation was created. One return was not or incorrectly posted. As always, there are many potential sources of error.

Balance confirmation on the key date in SAP Business One

In SAP Business One, a few steps are necessary to create balance confirmations according to specific requirements. With the Versino Financial Suite an assistant takes over and automates this. You can specify criteria such as the key date and customer, but also customer groups and/or responsible sales employees. The software then generates the corresponding letters.