Also called a “General Ledger”, the “Central Ledger”, functions much like a central repository responsible for storing the records of transactions of a company’s assets and liabilities, alongside the revenues, expenses, the equity of the owner and the like.
Within the context of modern-day Enterprise Resource Planning software, this ledger is considered the central ledger that comprises the data sent from modules which includes accounts payable, cash management, accounts, projects, and fixed assets. The central ledger then acts as the framework for any accounting system. This then records the organization’s financial data and non-financial data. All accounts included in this ledger are thus referred to as a ledger account.
The central ledger is the source of financial position details and income statements.