What is a Purchase Ledger?
A purchase ledger, also called accounts payable ledger, is a subsidiary accounting record detailing all amounts owed to suppliers and vendors for goods and services purchased on credit. This ledger tracks individual vendor accounts, including invoice details, payment terms, due dates, payments made, and outstanding balances.
The purchase ledger total must reconcile with the accounts payable control account in the general ledger. Modern accounting systems maintain digital purchase ledgers with automated tracking, aging reports, payment scheduling, and vendor management capabilities.
Accurate purchase ledger maintenance ensures timely payments, supports cash flow management, facilitates vendor relationship management, maintains supplier credit standing, and provides essential information for financial reporting and analysis.
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