The act of reconciliation of mutual settlements: how to make and what to do in case of discrepancies

The mutual settlement reconciliation act is a document in which two companies compare their data on shipments and payments for the period and record the result: the debt on the date and in whose favor it is. The law does not require it and does not establish a form, but without it it it is difficult to close the year, make an inventory of calculations and prepare a claim.

When the act of reconciliation is made

• Before annual reporting: inventory of settlements with counterparties.
• Once a quarter or a month with regular deliveries.
• Before extending the contract or changing the terms of the deferment.
• Before the claim and the court: so that the amount of debt does not cause a dispute.
• When changing an accountant or switching to another accounting program.

How to fill

1. Cap: The parties, the contract, the reconciliation period.
2. Opening balance: debt with which the period began.
3. Operations in order: Date, document, amount. The seller records shipments in debit, the payments received - on credit. The buyer on the contrary: payment in debit, receipts on credit.
4. Turnover over the period and end balance: Whose debt is owed and what is owed.
5. Signatures both sides.

The act makes one party according to its data and sends the second in two copies. The second party enters its data next to it and signs or returns the act with disagreements.

Turnovers and final debts will be calculated by the form [tool: reconciliation]: enter shipments and payments, leave the right half to the counterparty.

What to do when there are differences

Disagreement is no reason not to sign the act. It is signed with disagreements and indicate on which documents the data did not agree. Most often, the reason is one of four:

• Different dates. The seller reflected the shipment in December, the buyer accepted the goods in January.
• It didn't come through. The invoice or payment is accounted for only one party.
• An error in the amount or in the contract. The payment is split into another contract of the same counterparty.
• Returns and adjustments. One side did it, the other didn't.

Check line by line: first balance at the beginning, then each operation. The discrepancy found is corrected by the party that has the error, after which the act is re-signed.

Reconciliation act and limitation period

The total limitation period is three years. If the debtor has recognized the debt, the term is interrupted and begins to flow again (Article 203 of the Civil Code). The reconciliation act signed by the authorized representative of the debtor, the courts regard as such recognition.

There are two rules. The creditor should ensure that the act is signed by the head or a person with a power of attorney: the signature of an accountant without authority may not be accepted by the court. The debtor should understand that the signature under the act nullifies the limitation period for this debt.

Frequent questions

Is the contractor obliged to sign the reconciliation act?

Not unless such obligation is written in the contract. Therefore, the condition of reconciliation with a specific response period should be included in the supply contract.

Is it possible to collect the debt only by the act of reconciliation?

Nope. The act itself is not a primary document: the court needs a contract, invoices or acts and payment documents. The act of reconciliation confirms that the debtor agrees with the amount.

For what period should the act be drawn up?

For any month, quarter, year or entire term of the contract. It is important that the balance at the beginning coincides with the result of the previous act.

Do I need a seal?

The law doesn't require it. More important is the signature of the person who has the right to act on behalf of the company.