Customer Receivable Reconciliation and 6 Common Errors to Avoid

Customer receivable reconciliation is the process of checking and comparing each customer’s balance in the accounting books against invoices, cash collected and the customer’s own confirmation, in order to establish the correct receivable balance at a given point in time.

Circular 99/2025/TT-BTC requires enterprises to track receivables in detail by collection term, debtor, original currency and any other factors that suit their business activities and management needs. When preparing financial statements, enterprises use the remaining term of each receivable, 12 months or less or more than 12 months from the end of the accounting period, to present it as a short-term or long-term asset. Where there is any sign or evidence that a receivable cannot be collected or is unlikely to be collected, the enterprise must set up a provision for doubtful debts as prescribed.

This article is for business owners and finance managers who want to control the accuracy of the receivables in their accounting books and to assess whether the amounts customers still owe can really be collected. It covers receivable reconciliation in Vietnam step by step: the rules, a monthly process, common differences, confirmation letters and the errors to avoid. The scope is enterprises applying the accounting regime under Circular 99, in Ho Chi Minh City or elsewhere in Vietnam. Sources were checked on 04/11/2026.

Why Receivable Reconciliation Matters

Customer receivables are the amounts customers still owe the enterprise for goods sold or services provided but not yet paid for. If the receivable figures in the accounting books are inaccurate, the owner may misjudge cash flow, keep selling on credit to customers who already pay late, or fail to track and handle receivables in time. For a company with an overseas owner, the receivables report is often one of the first reports requested. It shows how much customers still owe, and it also helps management assess payment status, expected collection time and the risks that may affect the enterprise’s cash flow.

From a legal perspective, the guidance on Account 131, Receivables from Customers, in Circular 99/2025/TT-BTC sets out the points that bear directly on receivable reconciliation in Vietnam.

Aspect	Rule	Practical meaning
Detail by counterparty	Record details for each counterparty and each type of receivable	Do not keep one total for all customers
Collection term	Track the collection term in detail, 12 months or less or more than 12 months from the end of the accounting period, to present the item as a short-term or long-term asset	Each item needs a due date
Each payment	Record each payment separately	Each receipt must link to an invoice or contract
Classification at reporting	Classify items as paid on time, overdue, or not yet overdue but unlikely to be collected, in order to take action and set up provisions as prescribed	Review the ageing before closing the financial statements
Account balance	A debit balance is the amount still receivable from customers at the end of the accounting period. A credit balance shows amounts received in advance or collected in excess of the receivable, detailed by each counterparty. When preparing the Statement of Financial Position, the enterprise takes the detailed balance of each counterparty in this account and reports it on both the “Assets” side and the “Capital Sources” side	Do not offset customers with debit balances against customers with credit balances

The Circular does not use the term receivable reconciliation in Vietnam and does not prescribe a form of confirmation. Receivable reconciliation in Vietnam is a way of meeting the requirements above. Final responsibility stays with the company: Article 50(3) of the Law on Accounting makes the legal representative directly responsible for organising the accounting work, even when it is outsourced. Our article on accounting controls in Vietnam gives the wider picture.

A Monthly Process for Receivable Reconciliation in Vietnam

The law requires the result and does not prescribe each operation. The process below is our professional view of how a small or medium company can carry out receivable reconciliation in Vietnam.

Step	What to do	Output
1. Close revenue	Check that all invoices issued in the month are fully recorded	Invoice list compared with the Account 131 ledger
2. Close collections	Match each receipt to the customer’s invoice or contract	Cash receipts by customer
3. Compare total with detail	The total of customer sub-ledgers must equal the Account 131 balance in the general ledger	Receivables summary
4. Prepare the ageing	Group each item by days not yet due or overdue	Ageing report
5. Review unusual items	Look at credit balances, items with no recent movement and items with unclear content	Action list
6. Confirm with customers	Send statements to customers with large or overdue balances	Customer confirmations
7. Adjust and report	Post supported entries and report to the owner	Monthly receivables report

Receivable reconciliation in Vietnam does not require a confirmation to every customer each month. A practical approach is to confirm large and overdue customers monthly or quarterly, and all customers at year end. The timing should be fixed. For example, finish receivable reconciliation in Vietnam within the first 10 days of the following month, after the bank reconciliation, because collections must be right before receivables can be right.

Common Differences in Receivable Reconciliation in Vietnam

Most differences fall into a few familiar groups. The table below reflects our professional experience of receivable reconciliation in Vietnam; each case must still be handled on the basis of actual documents.

Difference	Common cause	How to handle it
Customer has paid, books not cleared	Payment has no description, or the payer’s name differs from the customer’s	Confirm with the customer and match to the right invoice
Customer has not recorded the invoice	Invoice issued at month end and received late	Resend the invoice and confirm the timing
Invoice not yet issued	Goods delivered or service completed without an invoice	Check the invoice timing under the rules
Discounts, rebates or returns not recorded	Sales agreed them but accounting has no document	Obtain the document, handle the invoice and record the entry
Customer withheld or deducted fees	Short payment after bank charges, service fees or penalties	Check whether the deduction has a contractual basis
Offsetting without minutes	The two parties buy from and sell to each other and offset balances	Prepare reconciliation minutes confirmed by both parties
Exchange differences	Foreign currency invoice collected at a different rate	Compare the original currency first, then handle the translation
Wrong customer posting	Two customer codes for one company, or for a branch and head office	Merge or transfer the code with approval

On invoice timing, Article 9(1) and (2) of Decree 254/2026/ND-CP provide that an invoice for goods is issued when ownership or the right of use is transferred, and an invoice for services is generally issued when the service is completed. When money is collected before or during the service, the invoice is issued on collection, except for a valid civil deposit. A difference caused by an unissued invoice is therefore also an invoicing issue, and receivable reconciliation in Vietnam should flag it for that check.

On offsetting, Article 26 of Decree 181/2025/ND-CP requires minutes reconciling figures and confirmed by both parties for offsetting between goods bought and sold, if this method is stated in the contract. Offsetting through a third party needs minutes signed by all three parties. This is a condition for the buyer’s VAT deduction, and it is also a practical reason not to offset balances by verbal agreement alone during receivable reconciliation in Vietnam.

A Hypothetical Example of Receivable Reconciliation in Vietnam

Hypothetical example: on 31/10/2026, the books of a trading company in Ho Chi Minh City show that Customer A owes VND 480 million, while Customer A confirms VND 452 million. The accountant performs receivable reconciliation in Vietnam as follows.

Line	Amount (VND million)	Treatment
Balance per books	480	Starting point
Less amount transferred by the customer, held in an unidentified account	(20)	Match to the invoice after customer confirmation
Less agreed discount not yet recorded	(8)	Handle under the related documents and invoice
Adjusted balance	452	Agrees with the customer’s confirmation

The figures only illustrate how to present receivable reconciliation in Vietnam. If a difference remains after review, the accountant should record the disputed item, the person responsible and the expected resolution date, rather than adjust the books simply to make them agree.

Confirmation Letters in Receivable Reconciliation in Vietnam

A confirmation letter is evidence from a third party, so it carries more weight than an internal spreadsheet. No mandatory form exists. In our professional view, a usable confirmation for receivable reconciliation in Vietnam should include:

• Names and tax codes of both parties, and the cut-off date.
• Opening balance, increases, payments and closing balance.
• A list of open invoices, with number, date and amount.
• The currency, and the original currency for foreign currency transactions.
• A box to agree, or to state the part not agreed.
• Signature by the representative or an authorised person of both parties, or an electronic confirmation.

Send it to the customer’s finance contact, not only to the sales contact, and keep the replies. Article 41(5) of the Law on Accounting sets a minimum of 10 years for documents used directly for bookkeeping and preparing financial statements, and a minimum of 5 years for documents used for management and operation, unless another law provides otherwise. The company should state the retention period for confirmation letters in its internal policy.

Foreign Currency and Doubtful Debts in Receivable Reconciliation in Vietnam

In receivable reconciliation in Vietnam, exporters and companies selling to overseas customers should compare the original currency first. The guidance on Account 413 in Circular 99/2025/TT-BTC requires that, when preparing financial statements, monetary items denominated in foreign currency are revalued at the average transfer buying and selling rate of the commercial bank with which the enterprise regularly transacts, at the end of the accounting period. The enterprise does not revalue the part of a foreign currency receivable for which a doubtful debt provision has been made.

For receivables that are hard to collect, receivable reconciliation in Vietnam produces the input data. Circular 99 requires classification when preparing financial statements and a provision as prescribed when there is evidence that collection is unlikely. The ageing report, reminder letters and confirmation letters from receivable reconciliation in Vietnam should be ready before a provision is considered. The conditions and rates of provision are a separate topic that we will cover in another article.

6 Errors to Avoid in Receivable Reconciliation in Vietnam

In our professional view, these are the errors most worth checking in receivable reconciliation in Vietnam.

• Looking only at the Account 131 total and not at each customer.
• Offsetting debit and credit customers when reporting, although Circular 99 requires the detailed balance of each counterparty.
• Applying receipts to the oldest item out of habit, without asking which invoice the customer paid.
• Offsetting balances between two parties without minutes.
• Keeping no due dates in the books, which makes an ageing report impossible.
• Letting one person collect cash, post entries and perform receivable reconciliation in Vietnam with no reviewer.

FAQ on Receivable Reconciliation in Vietnam

Does the law require confirmation letters for receivable reconciliation in Vietnam? The texts we reviewed set no mandatory form or frequency for all companies. Circular 99 requires detailed tracking and classification of receivables, and a confirmation letter is good practice for obtaining evidence.

How often should receivable reconciliation in Vietnam be done? We suggest internal reconciliation every month, confirmation with large or overdue customers monthly or quarterly, and confirmation of all customers at year end.

What if a customer does not reply during receivable reconciliation in Vietnam? Keep the letters sent, follow up, and use other evidence such as invoices, delivery records and cash received after the cut-off date.

Is a credit balance on Account 131 wrong? Not necessarily. It may be a customer advance or an excess collection, but you need to know which customer each item belongs to and why it exists.

What must the company still do for receivable reconciliation in Vietnam if accounting is outsourced? The company needs to send contracts, delivery records and information on agreements with customers. Article 56(3) of the Law on Accounting requires the service user to provide relevant information and documents fully, promptly and truthfully.

How Pham Consult Supports Receivable Reconciliation in Vietnam

Pham Consult provides accounting services and outsourced bookkeeping in Ho Chi Minh City. If your receivables do not agree, or you want to build receivable reconciliation in Vietnam into your monthly close, ask for a scope that states who does what. The actual scope is confirmed in the service contract.

To discuss, please book a scope call or call +84 909 660 105. To scope your receivable reconciliation in Vietnam, please tell us how many customers have open balances, whether you have foreign currency transactions and which period was last closed.

Legal sources were checked on 05/11/2026. This article is for general information only and does not constitute legal, tax or accounting advice; regulations may change after the date of publication, so please seek professional advice for your specific situation before making any decision.