Reconciliation is the controlled comparison of related records to identify, explain, and resolve differences. In procurement, it can compare orchestration and ERP states, orders and receipts, invoices and supporting records, or expected and posted values. A completed reconciliation requires defined ownership, tolerances, evidence, disposition, and escalation rather than merely generating a list of mismatches.
In plain English
It checks whether connected records agree and accounts for any differences.
Illustrative example
At Northstar Industrial Systems, procurement and finance compare invoice-readiness states with ERP postings and resolve missing, rejected, or duplicated handoffs.
- Related terms
- Invoice matching; ERP integration; Exception handling; System of record
- Lifecycle stages
- Reconcile
- Stakeholders
- Finance; Procurement; IT and Security; Operations