A “sub-ledger” or subsidiary ledger is a set of records that provides supporting detail for the balance in a general ledger control account. The supporting detail may consist of open invoice amounts (accounts payable, receivable sub-ledgers) or inventory on hand quantities. Typical sub-ledgers include accounts receivable, accounts payable and the inventory sub ledger. In the Stream V System there are actually three separate inventory sub-ledgers that are used to track the quantities and costs of the items in your system. These sub-ledgers are:
• WIP (Work In Process)
Each of the three inventory sub-ledgers store the open items and quantities that make up the sub-ledger balance. Each of the sub-ledgers are also costed separately (separate costs are maintained for the items in Inventory, Pending and WIP). The total of the three inventory sub-ledgers should agree with the balance in the inventory general ledger control account(s) at a given point in time as long as all inventory transactions have been posted to the system.
As inventory transactions are processed, the system tracks the cost and quantity of each item in the three inventory sub-ledgers. The system also automatically adjusts these costs and quantities as required. All activity which affects the inventory sub ledgers is also recorded in the Inventory Activity File (File 91). Records are written to the Inventory Activity file each time the cost or quantity of an inventory item is adjusted. The Inventory Activity file provides a detailed transaction history for each item and it also allows each of the three sub ledgers to be reconciled independently. Again, the total of all three of the sub ledgers at a particular point in time should match the balance in the General Ledger Inventory Control Accounts at the same point in time. The three sub ledgers are each briefly described below.