How does a sub ledger work?

How does a sub ledger work?

An accounts receivable subsidiary ledger is an accounting ledger that shows the transaction and payment history of each customer to whom the business extends credit. The balance in each customer account is periodically reconciled with the accounts receivable balance in the general ledger to ensure accuracy.

What is the difference between ledger and subledger?

The key difference between General Ledger and Sub Ledger is that General ledger prepared by the company is the set of the different master accounts in which the transactions of the business are recorded from the related subsidiary ledgers, whereas, Sub ledger act as an intermediary account set that is linked with the …

What is meant by sub ledger?

Short for a subsidiary ledger, a subledger is a subset of the general ledger which contains all financial accounting information for a company. A subledger contains details that contribute to the total financial transactions within a company.

What is sub ledger account in SAP?

Subledger accounting in SAP is accounting in areas of Vendor/customer/Assets. For Vendor we used to maintain subledgers for gettng proper groupngs of vendors this helps in reporting and decreasing work space in the system. Customer scenario is same as of vendor.

What is subledger and general ledger?

General ledger accounts provide summaries, while subledger accounts provide details. Your general ledger is designed to provide the balance of each of the accounts in your chart of accounts, while the subledger is designed to provide you with the details that make up that particular account.

What is sub-ledger account in SAP?

What is a vendor subledger?

An accounts payable subsidiary ledger is an accounting ledger that shows the transaction history and amounts owed to each supplier and vendor. An accounts payable (AP) is essentially an extension of credit from a supplier that gives a business (the buyer) time to pay for the supplies.

What is a general ledger template?

General Ledger Template A general ledger template is an account or record used to sort and store balance sheet and income statement transactions.

What is general ledger balancing?

A general ledger acts as a record of all accounts and their transactions. Balancing the ledger involves subtracting the total number of debits from the total number of credits.

What is Oracle general ledger?

The Oracle General Ledger is the central repository of accounting information. The main purpose of a general ledger system is to record financial activity of a company and to produce financial and management reports to help people inside and outside the organization make decisions. Here are the major functions of General Ledger.

What is general ledger suspense?

The suspense account in accounting is a general ledger account used to make temporary unclassified transaction postings until the correct account classification can be determined using transaction analysis. The suspense account allows the double entry to be maintained at the time of posting when the correct account is unknown.