Balance confirmation

A balance confirmation is a statement of the balance of an account that confirms the correctness of liabilities and balances. requirements of the business partner is checked. This is not an acknowledgement of the debt, but only a corresponding written document.

Purpose and meaning:

Verification of correctness: Control of accounting both in your own company and at the business partner.
Audit of the annual financial statements: An important component of the audit for the validation of receivables and liabilities.
Clarification of discrepancies: Detection and correction of differences between the bookings of different parties.
Evidence: Proof of documentation in the event of legal disputes.

Contents of a balance confirmation:

Opening balance at the beginning of the accounting year
Movements in debits and credits
Amount outstanding on the defined reporting date

function in SAP Business One:

The standard scope of SAP Business One does not include a native balance confirmation. Via the add on Versino Financial Suite However, a special report "Balance confirmation as at the reporting date" available.

Creation of an account balance statement on the desired key date
Direct dispatch of the report by e-mail from SAP Business One to the business partner

Legal context:

There is no legal obligation to prepare balance confirmations. Nevertheless, they are common practice for companies required to prepare financial statements and are often part of audits.