What is a sales ledger? #
A sales ledger is a sub-ledger or subsidiary ledger that is used to record all of a company’s sales of goods and services. It is a detailed record of the company’s accounts receivable, and it contains information about all the transactions that the company has made with its customers. The sales ledger is a part of the overall financial records of a company and is used to ensure that all the company’s sales are accurately recorded and tracked.
What does the sales ledger do? #
The sales ledger records all the details of each sale, including the sale date, the customer’s name, the invoice number, the quantity and price of the goods or services, the terms of payment, and the amount due. It also records the payment received from the customer, and the outstanding balance if any.
The sales ledger is important as it provides a detailed record of all the sales made by a company, it helps to ensure that the company is billing the correct amount to the customers and it provides a basis for the preparation of financial statements such as balance sheet and income statement. It also serves as a reference for budgeting, forecasting, and auditing and it can be used to reconcile with the general ledger.