A sales ledger is an accounting document that displays a complete itemization of all the sales made by the business along with presentation of these sales in the respective date sequence. Sales ledger also addresses credit issues such as product returns by the customers that result in decreased revenue that is earned by the business as a result of sales. The information on a sales ledger can be categorized as date on which the sale is made, invoice number, customer details, item details, amount of the sale, and amount of tax, value added charges and fright rates.
In each accounting period the information on the corresponding sales ledger is summarized and the summarized information is then posted to the sales account of the general ledger. The detailed and complete information of the sales ledger is kept aside from the general ledger to avoid making is overwhelmed with the information.
In accounting Sales Ledger can be used in a number of different ways:-
- The figures of the sales ledgers are used in the financial statements that are the figures of the sales ledger appears at the top of the income statement.
- The information in the sales ledger is also used for the research purposes related to any kind of sales issue. For example this information can be used for the trend line analysis of the business sales
- During auditing auditors can consult the information recorded in the sales ledger in order to find out the correct sales figure of the business.
Sana Ahmed