- \n
- The general ledger records summarized transactions, while the subledger stores more detailed records of specific transaction types.<\/li>\n\n\n\n
- The accounts receivable subledger represents company income, while the accounts payable subledger represents expenses. <\/li>\n\n\n\n
- The accounts receivable subledger tracks detailed records of the money customers owe to your business.<\/li>\n\n\n\n
- Identifying discrepancies in the subledger and making necessary adjustments is essential before finalizing the reconciliation process.<\/li>\n<\/ul>\n\n\n\n
\n\n\n\n<\/p>\n\n\n\n
Contents:<\/b><\/h3><\/p>\n
1. What is the difference between a ledger and a subledger?<\/a><\/p>\n
- \n
- What is the purpose of subledger accounts in the general ledger?<\/a><\/li>\n <\/ul>\n
2. What is the subledger of accounts receivable?<\/a><\/p>\n
- \n
- How is subledger information posted to the general ledger?<\/a><\/li>\n <\/ul>\n
3. What is the main difference between accounts receivable and accounts payable subsidiary ledger?<\/a><\/p>\n
4. How to reconcile accounts receivable subledger to general ledger?<\/a><\/p>\n
5. Example of reconciliation<\/a><\/p>\n
6. FAQ<\/a><\/p>\n\n\n\n
<\/p>\n\n\n\n
What is the difference between a ledger and a subledger?<\/strong><\/span><\/h2>\n\n\n\n
Before diving into more details regarding particular accounts, let\u2019s get into the basics. How do a ledger and a subledger differ? Is a subledger part of a ledger? Let\u2019s explore.<\/p>\n\n\n\n
<\/p>\n\n\n
\n![\"Ledger](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2024\/07\/ledger-vs-subledger-definitions-1024x590.png\")
<\/figure><\/div>\n\n\n<\/p>\n\n\n\n
The general ledger<\/strong> is the primary accounting record of a company, summarizing all financial transactions<\/em>. In contrast, a subledger<\/strong>, also known as a subsidiary ledger, is a detailed record of a specific type of transaction<\/em>, such as accounts receivable or accounts payable. <\/p>\n\n\n\n
So to say, subsidiary ledgers are more narrowly focused<\/strong> and contain more detailed information. <\/p>\n\n\n\n
All transactions in a subledger share one or more common characteristics. For instance, the asset category may include subledgers for cash accounts, accounts receivable, inventory, investments, and fixed assets.<\/p>\n\n\n\n
Note:<\/em><\/strong> The listed transactions in each subsidiary ledger account should match the related general ledger accounts. <\/p>\n\n\n\n
What is the purpose of subledger accounts in the general ledger?<\/strong><\/span><\/h3>\n\n\n\n
The purpose of subledger accounts in the general ledger is to provide detailed information about specific types of transactions<\/strong>. It can show the account status and amounts owed by a specific customer. Accountants use subaccounts to organize the general ledger, especially in large organizations, where maintaining all transactions solely in the general ledger can become cumbersome.<\/p>\n\n\n\n
What is the subledger of accounts receivable?<\/strong><\/span><\/h2>\n\n\n\n
Simply put, a subledger of accounts receivable is a detailed record that tracks all the money customers owe to a company<\/strong>. It lists each customer’s unpaid invoices and the amounts they need to pay. This helps the company know exactly who owes them money and how much, supporting the overall summary of accounts receivable in the main ledger.<\/p>\n\n\n\n
For example, while the general ledger may show a total accounts receivable balance of $100,000, it won\u2019t specify which customer owes how much. This detailed information can be found only in the accounts receivable subsidiary ledger.<\/p>\n\n\n\n
To ensure accuracy, a company\u2019s accountant frequently reconciles the balance in each customer account with the accounts receivable balance in the general ledger.<\/p>\n\n\n\n
How is subledger information posted to the general ledger?<\/strong><\/span><\/h3>\n\n\n\n
The information contained in a subledger is typically totaled and summarized in a control account within the general ledger which reflects the activity recorded in the subledger but without all the details. This approach maintains the organizational structure of the chart of accounts while keeping the general ledger free of unnecessary details.<\/p>\n\n\n\n
For example, a subledger for accounts receivable will include detailed journal entries<\/a> with the date, purchase price, customer name, and cost of goods sold for each transaction. In contrast, the general ledger entry in the control account would represent only a total and summary of multiple similar entries within the subledger.<\/p>\n\n\n\n
Eager to learn more about accounting specifics? Book a slot on Synder\u2019s upcoming webinar<\/a> with accounting professionals.<\/p>\n\n\n\n
What is the main difference between accounts receivable and accounts payable subsidiary ledger?<\/strong><\/span><\/h2>\n\n\n\n
The difference is pretty obvious. The accounts receivable subsidiary ledger, which tracks money owed to the company by customers, is the opposite of the accounts payable subsidiary ledger, which tracks money the company owes to suppliers.<\/p>\n\n\n\n
<\/p>\n\n\n\n
<\/p>\n\n\n\n
- How is subledger information posted to the general ledger?<\/a><\/li>\n <\/ul>\n
- What is the purpose of subledger accounts in the general ledger?<\/a><\/li>\n <\/ul>\n
![\"Accounts](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2024\/07\/accounts-receivable-subledger-reconciliation-steps.png\")
<\/figure><\/div>\n\n\n![\"Accounts](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2024\/07\/example-of-accounts-receivable-subledger-reconciliation-with-general-ledger.png\")
<\/figure><\/div>\n\n\n