Reading and interpreting the Contact Statement of Account report

A Contact Statement of Account is like a ledger for a single customer or vendor. It shows every transaction in order, with a running balance, making it easy to verify what you have recorded and spot any discrepancies.

What a statement shows

A Contact Statement includes:

• Opening balance (if selected) — what the contact owed or was owed at the start of the period.
• Date — when each transaction occurred.
• Reference — document number (invoice, bill, payment, etc.).
• Description — the type of transaction and any note (e.g., "Invoice INV-001").
• Debit/Credit columns — amounts the contact owes you (debit) or you owe them (credit). For customers, debits are sales; credits are payments. For vendors, credits are purchases; debits are payments.
• Running balance — the cumulative total after each transaction.
• Closing balance — the final balance at the end of the period.

Reading the balance

For a customer:

• Positive balance (debit) = they owe you.
• Negative balance (credit) = you owe them (overpayment or prepayment).

For a vendor:

• Positive balance (credit) = you owe them.
• Negative balance (debit) = they owe you (overpayment or overpaid advance).

Using it for reconciliation

1. Send the statement to your customer or vendor and ask them to verify it matches their records.
2. If there is a discrepancy, work backward from the running balance to find the transaction in question.
3. Check if the difference is a timing issue (they recorded a payment later than you) or a real error.

Difference from Contact Balance report