Reconciliation Letters

The signature goes on one number. The evidence is in the lines.

The counterparty confirms the balance through a secure link, and the letter is issued per currency.

Continuous reconciliation
Your statement
INV-0412 · Sale48,250.00
Counterparty statement
0412 · Purchase48,250.00
Your statement
INV-0377 · Sale9,600.00
Counterparty statement
0377 · Purchase9,600.00
Your statement
Receipt · Transfer48,250.00
Counterparty statement
Payment · Transfer48,250.00
Verified

Letter summary agrees · net ₺19,400.00

Serial 2026-06/0031; the per-currency summary rests on matched lines.

Sent with your approval

Lines first, letter last. The confirmed number carries a matching record behind it.

Illustrative screen · sample data

This page explains how iFinances produces a reconciliation letter, written for controllers, accounting managers and internal auditors. What you gain is a balance confirmation letter backed by a line-by-line matching record.

The usual practice prepares the letter at period end and writes a single balance. A vendor balance of TRY 48,250.00 on account 320 (trade payables) is typed in and signed. iFinances reverses the order. Ledger, bank and e-invoice (e-Fatura) lines match first, the counterparty confirms next, and the letter comes last.

WHY IT IS HARD

Why is a balance-only letter not enough?

In most companies, sending confirmation letters still runs on a Word template and a mail merge. The problem is not the letter itself but what the letter proves.

One number, no evidence

The letter states only the period-end balance, say TRY 48,250.00. An invoice never booked and a payment booked twice can cancel each other out. The balance agrees, the counterparty confirms, and both errors stay in the ledger.

Silence is not acceptance

When no reply arrives within a month, the balance is assumed accepted. Article 94 of the Turkish Commercial Code (TTK) ties that result to a written current-account agreement. Without one, a pile of unanswered letters is a list of open items, not legal comfort.

An objection starts a search

The counterparty reports TRY 46,100.00 while you expect TRY 48,250.00. Two statements are laid side by side and the TRY 2,150.00 difference is hunted by hand. Because the letter carries no line list, nobody knows on day one which invoice is in dispute.

The counterparty has no software

Electronic confirmation tools expect the other side to register on a portal. The supplier's bookkeeper will not. They print the PDF, sign it, scan it and email it back. The digital process falls back to paper.

Signed copies are scattered

Signed letters sit in inboxes and shared folders. The auditor asks for the June 2026 copy for one account, and the search begins. A copy that cannot be found counts as a reconciliation that was not done.

The letter is mistaken for an audit confirmation

In a statutory audit, external confirmation under ISA 505 is a request the auditor sends and receives directly. ISA stands for International Standard on Auditing, adopted in Türkiye as BDS 505. The company's reconciliation letter does not replace it. A company that treats letters as audit confirmations has no line-level evidence when the auditor asks.

HOW IT WORKS

Upload the statement, let the lines match, issue the letter last

The reconciliation letter is not a separate module. It is the last step of three-way matching. Each step below says what you do and what iFinances does.

  1. 1

    Match your own side

    You upload your ERP account statement, your bank statement and your e-invoice data as Excel or CSV. iFinances matches the lines using FIFO, meaning the oldest invoice is settled first, or invoice-specific settlement. It splits partial payments, allocates bulk payments and compares currencies at the TCMB (Central Bank of Türkiye) rate. For example, invoice FT-2026-0412 for TRY 48,250.00 matches the transfer of June 18, 2026, and awaits your approval.

    AR · bank · e-invoice · June 2026
  2. 2

    Collect the counterparty's statement

    You send the counterparty a personal, time-limited secure link. The counterparty uploads its own account statement without installing software or creating an account. iFinances compares the two statements. Items on both sides, items on one side only and items with a different amount are listed separately.

    Secure link · 20.06 · uploaded
  3. 3

    Close the differences line by line

    You work through items flagged as missing invoice, duplicate entry or unexplained difference one at a time. For example, you note "invoice not yet received by the counterparty" against FT-2026-0412, absent on their side. Corrections are made in your own ERP, and iFinances only tracks them and keeps the reason. iFinances does not keep books, does not create entries and never closes a line on its own.

    INV-0412 ↔ 0412 · 48,250.00 ✓
  4. 4

    Issue the letter

    When the counterparty confirms through the link, iFinances issues the letter as a PDF with a serial number. The letter carries one summary table per currency, showing opening balance, invoices, returns, collections and net balance. The net balance, for example TRY 48,250.00, is the figure the counterparty confirmed. The line list is not attached but stays on the platform, linked to the letter, and opens on objection.

    Letter 2026-06/0031 · net ₺19,400.00
  5. 5

    Archive the signed copy

    The counterparty returns the signed copy through the same link, or you upload it. iFinances files the copy against the account and the period. The send date, the reply date and the integrity digest (hash) of the underlying statement stay on record. When the auditor asks for the June 2026 copy, the document is opened, not searched for.

    Signed copy · 28.06 · archive
THE DIFFERENCE

How is this different from a balance-approval tool?

Both approaches produce a letter and wait for a reply. The difference is what the letter rests on and what you hold when an objection arrives.

Balance-approval tool
  • Letter is sent first, carrying one balance
  • Counterparty says yes or no to a number
  • An unanswered letter is assumed accepted
  • Counterparty must register on a portal
  • Signed copy stays in an inbox
  • One currency, one balance
iFinances reconciliation letter
  • Letter is issued after lines match and counterparty confirms
  • Counterparty uploads its statement; differences show line by line
  • An unanswered request stays open until it expires
  • Counterparty uploads through a secure link, no software
  • Signed copy is archived by account and period
  • A separate summary table for each currency
WHAT YOU GAIN

What do you gain?

With a matching record behind the letter, three jobs get easier.

01

You stop searching when an objection arrives. When the counterparty reports TRY 46,100.00, the TRY 2,150.00 difference is already explained at line level. For example, FT-2026-0412 is not booked on their side, and that note stays linked to the letter.

02

You open documents for the auditor. The auditor sends its own ISA 505 confirmation, and your letter does not replace it. But a line-level matching record and an archived signed copy help the auditor understand the differences quickly.

03

You do not rely on silence. The one-month objection period in Article 94 of the Turkish Commercial Code depends on a written current-account agreement. iFinances issues a letter only on confirmation, and an unanswered request shows as an open item.

Start with one account

Bring the statement of your most disputed account and the last statement the counterparty sent. We will match the lines together and show you the record behind the letter.

Book a call
FAQ

Frequently asked questions

No. The counterparty receives a personal, time-limited secure link. It uploads its statement as Excel or CSV and confirms or disputes the balance. No subscription, installation or account is required. The signed copy can be returned through the same link.

Not automatically. The one-month objection period in Article 94 of the Turkish Commercial Code applies within a written current-account agreement. iFinances never treats silence as acceptance. An unanswered request shows as pending until it expires, then as expired. For the legal consequence in your case, consult your own counsel.

No. External confirmation under ISA 505 (BDS 505 in Türkiye) is a request the auditor sends and receives directly. iFinances gives you a line-level matching record, explained differences and signed copies archived by account and period. Most of the auditor's questions are then answered by opening a document.

The letter carries a separate summary table for each currency. For example, the EUR balance and the TRY balance appear in separate tables. Comparisons use the official TCMB rate. Exchange differences appear as separate items in the matching record, each with a written reason.

Requests are created in bulk, and each account receives its own link. The status, whether sent, confirmed, disputed or expired, is tracked per account. Letters are not issued in bulk; one is issued for each account when its counterparty confirms. We recommend sending requests after matching is finished.

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