Vendor Invoice and Credit Note Reconciliation

• CFO or Finance Controller
• Accounts Payable Manager
• Vendor Accounts Lead
• Category Finance Manager

Retailers and quick-commerce operators deal with hundreds of vendors, each sending invoices, credit notes and statements in their own format. Credit notes for short supply, damages, returns to vendor, price drops and promotional support are agreed in one place and issued, or not, somewhere else.

We build a reconciliation engine that brings together vendor invoices, GRNs, short-receipt and damage reports, return-to-vendor notes, promotional and price-protection agreements, credit notes and vendor statements. OCR and an LLM read the PDFs and spreadsheets vendors send. For each trigger event, such as an RTV or a price drop, the system recalculates the credit you are owed from the agreement and source quantities, then matches it to credit notes received. Missing, short and duplicate credit notes are flagged with evidence. Finance approves adjustments, and the system drafts vendor dispute emails and an open-items ageing report.

• Reads vendor invoices, credit notes, debit notes and statements in PDF, scan and spreadsheet form
• Links each expected credit to its trigger: short GRN, damage report, RTV, price drop or promo agreement
• Recalculates expected credit amounts from agreements and source quantities, not from vendor documents
• Flags missing, short, duplicate and misapplied credit notes
• Reconciles vendor statements of account against your ledger and lists differences with reasons
• Drafts vendor dispute emails with the evidence attached and tracks responses

1. 01Gather documents and eventsVendor documents come from email and portals; GRN, RTV and promo data come from the WMS, ERP and category teams.
2. 02Extract and normaliseInvoices, credit notes and statements are read into a common structure with confidence scores.
3. 03Recalculate expected creditsFor each trigger event, the expected credit is calculated from agreements and source quantities.
4. 04Match and flagExpected credits are matched to credit notes received; gaps, shorts and duplicates are flagged.
5. 05Finance reviewVendor accounts reviews exceptions, confirms adjustments and approves dispute emails.
6. 06Post and trackApproved entries are posted to the ERP, and open items are aged and followed up.

1. Ingestion
   • Vendor email and portal connectors
   • WMS GRN and RTV exports
   • Promo and price-protection agreement register
2. Extraction
   • OCR with table detection
   • LLM extractor for invoices, credit notes and statements
3. Reconciliation engine
   • Expected-credit calculator from agreements
   • Many-to-many matcher with tolerances
   • Duplicate and misapplication checks
4. Review
   • Exception queue with evidence panel
   • Dispute email drafts and response tracking
5. Posting and audit
   • ERP adapter for adjustments
   • Open-items ageing and audit log

Vendor accounts approve every adjustment and every dispute sent to a vendor, and category managers confirm the terms of promotional and price-protection agreements. Uncertain lines are flagged for review rather than passed.

• ERP such as SAP, Oracle, Microsoft Dynamics or Tally
• WMS and store systems for GRN and RTV data
• Vendor portal or AP mailbox
• GST compliance tool for GSTR-2B
• Email for dispute follow-up

• Expected credits recalculated from agreements and source data, not copied from vendor documents
• Uncertain lines flagged, never silently matched
• Duplicate credit note detection across periods
• No postings without finance approval
• Full audit trail of matches, edits and approvals

• Credit notes are checked for references to the original invoice, which supports your tax team's GST and GSTR-2B reconciliation.
• The audit trail supports statutory audit of vendor balances.

• Retail, D2C & Quick Commerce

  Distributor Trade Claims and Scheme Settlement

  Read distributor claim sheets and proofs, apply scheme rules from your circulars, recalculate eligible amounts, catch duplicates and give finance a clean credit note sheet to approve.

• Retail, D2C & Quick Commerce

  Dark-Store Picking and Packing QC

  A camera at the packing station checks each tote against the order before the bag is sealed, catching wrong variants, missing items and near-expiry stock, and keeps an image per order.

• Manufacturing

  Purchase Order, GRN and Invoice Three-Way Matching

  Read supplier invoices, match every line to POs and GRNs in SAP or Tally, check GST details and tolerances, propose debit notes and send only real exceptions to accounts payable.

• Accounting, Audit & Consulting

  GST Return Reconciliation (GSTR-2B vs Books)

  Match GSTR-2B and 2A data against the purchase register invoice by invoice, find ITC at risk before GSTR-3B is filed, and draft supplier follow-ups for approval.