Table of Contents
What are sub-ledgers used for?
A subledger or subsidiary ledger provides the details that make up the balance of specific general ledger accounts. Because general ledger accounts only provide an ending balance for each particular account, a subsidiary ledger is used to provide the details that result in that general ledger balance.
Which items go directly to general ledger without any subledger posting?
There are times when items will go directly to the general ledger without any sub-ledger posting. These are primarily capital financial transactions that have no operational sub-ledgers. These may include items such as capital contributions, loan proceeds, loan repayments (principal), and proceeds from sale of assets.
What are the sub-ledgers of the general ledger?
A sub-ledger explains transactions and feeds into the general ledger. A sub-ledger has no chart of accounts. A general ledger has a few accounts in the following categories; assets, liabilities, income, expenses, and equity. They also have a few sub-accounts, such as accounts payable and accounts receivable.
Can a subsidiary ledger can replace a general ledger account?
A subsidiary ledger can be set up for virtually any general ledger account. However, they are usually only created for areas in which there are high transaction volumes, which limits their use to a few areas.
What is subledger with example?
Sub Ledger (SL) read more is an intermediary set of accounts linked to the general ledger. Examples of the GL are account receivable, account payable, cash management. read more, bank management, and fixed asset. Examples of sub-ledger are customer accounts, vendor accounts, bank accounts, and fixed assets.
What are the advantages of using subsidiary ledgers?
The advantages of using subsidiary ledgers are that they: Permit transactions affecting a single customer or single creditor to be shown in a single account, thus providing necessary up-to-date information on specific account balances.
What is a sub ledger in SAP?
The subledger, or subsidiary ledger, is a subset of the general ledger used in accounting. The subledger shows detail for part of the accounting records such as property and equipment, prepaid expenses, etc.
How do you reconcile subledger to general ledger?
The Reconciliation Process
- Compare the opening balances of the general ledger account and the sub-ledger listing with the prior period reconciliation statement.
- Compare the transactions recorded in the current period in the general ledger to those recorded in the sub-ledger.
- Investigate differences and classify them.
What is main ledger and subledger?
General ledger and sub ledger are such accounts that record business transactions. The key difference between general ledger and sub ledger is that while general ledger is the set of master accounts where transactions are recorded, sub ledger is an intermediary set of accounts that are linked to the general ledger.
What subsidiary ledgers and special journals are and how they should be used?
In summary, subsidiary ledgers help track individual balances for each individual customer, for each individual supplier, for each individual inventory account. The detail of the special journals is posted to the sub-ledgers on a daily basis whereas the total is posted to the general ledger on a monthly basis.
Why do businesses prepare subsidiary ledgers?
The purpose of keeping subsidiary ledgers is for accuracy and efficiency. They aid us in keeping accurate records. Since the total of the accounts receivable subsidiary ledger must agree with the balance shown in the accounts receivable general ledger account, the system helps us find mistakes.
How are sub ledgers used in a general ledger?
Sub-ledgers, or subsidiary ledgers, within each account provide additional information to support the journal entries in the general ledger. Sub-ledgers are used when a particular account has a lot of activity. For example, the accounts payable general ledger account may use information from a purchase’s sub-ledger account.
What do you mean by subledger in accounting?
What is Subledger in Accounting? Subledger is a subset of various general ledgers used for accounting and may contain all accounts receivable, accounts payable, prepaid expenses, or fixed assets related to financial transactions.
What can you do with a subsidiary ledger?
You can achieve a sufficient amount of control with the financial information contained in the subsidiary ledger – by controlling the current balances of every customer, you can review every transaction within that account, and determine the authenticity of that transaction.
How are sub ledgers and general ledgers different in Dynamics AX?
Although general ledger and sub-ledgers are both used for recording transactions, there are some differences: Sub-ledger Processing in AX. In Dynamics AX, you can define additional performance optimization and summarization rules for the transfer of sub-ledger journal entries to general ledger.