Subsidiary ledger
In one sentenceA ledger containing the detail accounts of a single category, such as each customer or each supplier; the total of its balances equals the control account balance in the general ledger.
Simply put
The general ledger shows the “Suppliers” account as one figure. The subsidiary ledger shows each supplier's account: their invoices, payments and balance.
It produces the account statements you send to customers and suppliers, and the aging reports. Reconciling it with the control account is one of the important closing steps.
Worked example
A restaurant buys on credit from three suppliers, and the “Suppliers” account balance in the general ledger is 45,000 SAR.
Meat supplier20,000 SAR
Vegetable supplier15,000 SAR
Packaging supplier10,000 SAR
20,000 + 15,000 + 10,00045,000 SAR
Subsidiary ledger total = Control account balanceMatched
Don't confuse it with
Special journals (subsidiary books)Special journals record transactions as they happen, while the subsidiary ledger collects each party's movements and balance.
in FullScreen ERP
The system provides supplier account statements and supplier payables aging. Purchasing and suppliers