Subledger
In Arabic الدفتر الفرعي
A detailed record, such as open customer invoices or stock by item, whose total should equal one account in the general ledger.
In plain words
The ledger holds one receivables balance; the subledger shows which customers make it up and which invoices are open. Collectors, buyers and storekeepers work from the subledger, while the statements read the ledger.
Common subledgers are receivables by customer, payables by vendor and inventory by item. Each one feeds its control account, and at month end the two totals are compared before the period is closed.
The common mistake is posting manual journals straight to a control account. The ledger moves, the subledger does not, and the two stop agreeing with no document to explain why.
- Customer A, open invoices
- SAR 12,400
- Customer B, open invoices
- SAR 7,850
- Customer C, open invoices
- SAR 3,250
- Subledger total, equal to the ledger
- SAR 23,500
In Axon Suite
How Axon Suite handles it
Before you close, Axon Suite sets each control account in the ledger against its subledger, such as open invoices, open bills or stock valuation. A difference of 0.01 or more is out of balance.
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