Control account
In Arabic حساب المراقبة
A general ledger account that holds the total of a subledger, such as receivables, payables or inventory, so the two can be checked against each other.
In plain words
Control accounts keep the ledger short and the detail elsewhere. Instead of one account per customer, the ledger carries one receivables account, and its balance must equal the open invoices in the subledger.
Documents post to the control account as they post to the subledger: an invoice raises receivables, a payment lowers it. At month end each control account is compared with its subledger, and any difference is traced.
The common mistake is letting anyone post manually to a control account. A typed journal there has no matching document, so the difference appears at month end with no trail.
- Inventory in the ledger
- SAR 186,400
- Stock valuation by item
- SAR 185,900
- Difference
- SAR 500
- Status
- Out of balance: trace before closing
In Axon Suite
How Axon Suite handles it
Before close, Axon Suite checks six control accounts against their own records: receivables, payables, inventory, goods received not invoiced, tax and cost of goods sold. The close dashboard reads all six at once.
Feature
Ledger against subledger, before close
Before you close, Axon Suite sets each control account in the ledger against the records behind it. The close dashboard reads all six at once and says whether you are ready.
Open: Ledger against subledger, before close