Posting to the Ledger

Definition

The financial accounting term posting to the ledger refers to the process of analyzing the credits and debits appearing in journal entries, and recording those transaction amounts in the proper accounts found in the company's general ledger.

Explanation

An accounting ledger can be a book or database of accounts.  The term general ledger refers to the book or database containing assets, liabilities, owner's equity, revenues and expenses.  Subsidiary ledgers can be used to hold specific subgroups, such as assets, which then roll up to the general ledger.

As part of the accounting cycle, journal entries are posted to the company's general ledger.  This process involves recording in the proper ledger account the dollar value associated with each transaction's debit and credit.

Once a debit or credit is posted to the general ledger, a reference number is recorded alongside, or assigned to, the corresponding journal entry.  This process provides the accounting department with a tracking mechanism to ensure all journal entries are eventually posted to the company's general ledger.

Related Terms

accounting cycle, journalization, double entry accounting, general ledger