Accounting Subledgers and Operational Management Systems feed General Accounting Systems. A subledger contains the detail of a certain area of business activity while the general accounting system reflects a summary value of the business activity. Following are the primary business subledgers and operational systems:
- Accounts Receivable – The accounts receivable subledger contains the detail of what is owed by customers that have payment terms and don’t pay at the point of sale. Charges and payments are posted in the subledger and the summary of the balance is kept at the general accounting level. The accounts receivable subledger is often part of the operational management system or Auto Shop Management Software.
- Accounts Payable – The accounts payable subledger contains invoices from suppliers and the payments posted to them. The summary balance of this subledger appears in the General Accounting System. Often the accounts payable subledger is part of the Auto Repair Shop Software system and is sometimes referred to as the ‘Vendor Invoicing System’.
- Operational Systems – For an Auto Repair Shop – the operational system is often referred to as ‘Auto Repair Shop Software’. Although it does much more – one of the purposes of this software is to support accounting. The primary accounting areas affected are sales and expenses (or cost of goods sold).
