Debitoor Dictionary

Accounting terms explained in a simple way

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What is the Purchase Ledger Control Account?

Definition: The balance on the Purchase Ledger control account - also referred to as the 'Trade creditor control account' - should equal the balances on the individual supplier accounts.

The Purchase ledger control account, or Trade creditor control account, is part of the balance sheet and shows at any given time how much you owe to your suppliers. All the individual transactions posted to your supplier ledger cards so invoices, credit notes and payments are reflected in this account.

This account should be reconciled each month end making sure it reflects the same balance at the same time as your Aged Creditor report which shows the individual balances outstanding to your suppliers. If there is a difference then this should be investigated.