Accounts Receivable /Payable Subledgers

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An accounts receivable subsidiary ledger is an accounting ledger that shows the transaction and payment history of each customer to whom the business extends credit. It is also referred to as accounts payable and accounts receivable (open item accounting). The subsidiary leger records all of the accounts payable that a company owes. In addition to the addressees, this also includes information on payment deadlines, bank accounts, discounts, etc.

The main tasks are:

  • Enter, print and send invoices,
  • Allocate payments from customers to invoices,
  • to create an overview of the due dates of open accounts receivable as well as
  • Dunning and collection.

In the accounts receivable sub-ledger, specific evaluations can be created - for example, open items as of a key date, most profitable customers (VIP customers), and payment analyses. These show which customers pay on time and what their average payment period is.

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