Statement of account

A statement of account is a periodic summary the seller sends the buyer that lists every transaction between them during the period (invoices issued, payments received, credit notes applied) and the resulting outstanding balance.

Applies in: Global

A statement is a reconciliation document, not a payment demand. It is what a supplier sends when a buyer's AP team needs to confirm "what do we owe you and which invoices is it for." It typically covers the previous month (or quarter), lists each invoice issued, each payment received, any credit notes applied, and the closing balance. It is the supplier's view of the relationship, useful for finding mismatches with the buyer's view.

The right time to send one is when there is something to reconcile. Monthly statements as a matter of course are common in industries with high invoice volume (utilities, recurring SaaS) where the buyer wants the consolidated view. Ad-hoc statements are useful when a buyer queries an invoice, when a payment is missed, or when an aged-receivable balance has built up that the supplier wants to chase.

The statement is not itself an invoice and does not create a new obligation to pay. The obligation comes from the underlying invoices. If a buyer pays "against the statement" they are paying down the invoices listed on it, and the supplier should apply the payment back to the specific invoices in their accounting system to keep the audit trail intact.

Common questions about Statement of account

What is the difference between a statement and an invoice?

An invoice is a request for payment for a specific transaction, with its own number, line items, and due date. A statement is a summary of multiple invoices and payments over a period. The statement does not itself create a payment obligation; the underlying invoices do. Statements are reconciliation tools; invoices are payment demands.

When should I send a statement of account?

Monthly as a routine in high-volume relationships (recurring services, utilities, SaaS). Ad-hoc when a buyer queries a balance, when an invoice is overdue, or when the supplier wants to flag an aged receivable. Sending statements without a clear trigger can come across as nagging in low-volume relationships; reserve them for when there is something to reconcile.

Can a buyer pay "against a statement"?

Yes, and many do, especially when they have multiple open invoices and want to settle them in one transfer. The supplier should match the payment back to specific invoices in their accounting system so the audit trail stays intact. Buyers usually reference the statement number or list the invoice numbers being paid in the transfer memo to make this easier.

Use JupiterInvoice for Statement of account

Statement of account on a JupiterInvoice invoice is a field, a label, and an audit trail your buyer can act on without an email back-and-forth.

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Related terms

Invoice Receipt Credit note Debit note

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