Subsidiary Ledgers – AP Ledger

Imagine how big your ledger would be if you had 8,000 different suppliers sending you over 2,000 items that you trade? Subledgers are used to manage and store specific information about each of your G/L control accounts. and Sub Ledger for AP is called AP Subsidiary Ledger.

The purpose of the Accounts Payable sub-ledger is to manage vendors and payments related to purchases.

An Accounts Payable invoice is recorded in the Accounts Payable sub-ledger at the time an invoice is received and posted that the respective goods corresponding to the invoice have been received. Then it is checked and cleared for payment according to the payment terms agreed with the supplier.