A chain of records, not a pile
After the cargo has been delivered, a shipment leaves a set of documents behind: a quotation, a booking, a delivery record, an invoice, a payment and a receipt. In a pile, they invite disputes. In a chain, each one refers to the one before it, and a reader can follow a reference from the payment back to the quotation. Close-out is the step in which that chain is checked.
The records and what each states
| Record | What it states | What it does not state |
|---|---|---|
| Quotation | Scope, items, price basis and validity as offered | That the service was performed |
| Customer approval of the quotation | The customer accepted that scope and those terms | That the supplier has validated it on its side |
| Delivery record (including POD) | Handover: who, when, quantity, condition, exceptions | That the invoice has been paid |
| Invoice | Amount due, for what, by when, to which account | That payment was received |
| Pre-payment receipt | The amount due and how to pay, issued before payment | That any money was received |
| Confirmed payment receipt | That the supplier has checked the payment and confirmed it | A review of whether the goods were as ordered |
Reconciliation in order
- Match the invoice lines to the quotation items. Differences should have a recorded reason, such as an approved change.
- Match the delivered quantity and condition on the delivery record to what the invoice charges for.
- Check exceptions on the delivery record and whether each one is closed, credited or still open.
- Check that the invoice and the pre-payment receipt state the same amount and account.
- When payment arrives, match the amount and reference to the invoice. Record partial payments and differences, and do not call the invoice paid until the supplier has confirmed.
- Issue or obtain the confirmed payment receipt after confirmation, not before.
- File the set with cross-references so each document can be found from any other.
A hypothetical transaction
Hypothetical transaction, invented for illustration.
A quotation covers 10 pallets at a stated price per pallet. The delivery record shows 10 pallets handed over, with a note that two cartons on pallet 6 were wet. The invoice charges for 10 pallets. The customer pays the full amount and asks for the wet cartons to be considered.
At close-out the reconciler sees three open points: the exception on the delivery record, the full payment against a disputed item, and the confirmation of the payment. The exception is logged as a claim under the shipment’s reference; the payment is matched and confirmed; the confirmed receipt is issued. The claim is handled on its own track and does not block the receipt, and the file shows exactly that.
Why the receipt types are kept apart
A pre-payment receipt and a confirmed payment receipt serve different readers at different times. If both are called "receipt" and treated alike, a customer may believe an invoice is settled when no money has been confirmed, or a finance team may close a file on a document that never certified payment. Naming them separately, and stating on each what it does and does not show, protects both sides.
Secure verification
Documents that are sent by email are copied, forwarded and sometimes altered. A verification link or QR code that opens a record held by the issuer lets a reader check the document number, its type and its current status against the source. It should expose only what the checker needs: personal data and amounts belong behind a link that does not list other customers’ records. The GS1 Traceability Standard describes recording key events and the data about them as the basis for trusting a chain, and the same idea applies to documents.
Who reconciles, and how often
Decide who owns close-out for each shipment and by when. A common rule is to review every shipment within a set number of days after the delivery record arrives, and to review any open exception weekly until it is closed. Without an owner, reconciliation happens only when a customer complains or an auditor asks, which is the most expensive time to discover a gap.
Keep the checks the same for every shipment, so that a gap stands out because it breaks a pattern. A short form with the seven steps above, a tick for each and a note for each exception is enough.
Credits, partial payments and corrections
Real shipments rarely close cleanly. A credit note may reduce an invoice after a claim, a customer may pay in two parts, or an invoice may need a correction. Record each of these as its own event with a date and a reference to the document it changes, and never overwrite the original. A reader should be able to see the invoice as issued, the change and the reason, in that order.
When a payment does not match the invoice, hold the confirmation until the difference is explained. An unexplained difference that is later discovered by the customer is far harder to resolve than one that was raised on the day it appeared.
What to keep, and for how long
Keep the whole set together: quotation, approval, delivery record with photographs, invoice, receipts and correspondence about exceptions. Retention periods for accounting and tax records are set by law and by your accountant’s advice, so confirm them for your business and apply the same period to the linked delivery records, so that a document is never kept without the record that explains it.
Limits of this guide
The article describes a pattern for reconciling records. The example is hypothetical. Accounting, tax and e-stamp requirements for invoices and receipts depend on the law and on your accountant’s advice; this article is not advice on them. Standard forwarding documents, such as those FIATA publishes, have their own terms.