Subledger

A subsidiary ledger that contains detailed transaction records for a specific account category, which are summarized and posted to the general ledger.

Key Details

  • Common subledgers include accounts receivable (AR), accounts payable (AP), inventory, and fixed assets.
  • Subledgers provide granular detail while keeping the general ledger clean and manageable.
  • The total of all transactions in a subledger must equal the corresponding control account balance in the GL.
  • Subledger reconciliation is critical for ensuring the accuracy of consolidated financial statements.

Related Terms

General LedgerReconciliationFinancial Close

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