General Ledger (GL)
The master accounting record that contains all financial transactions organized by account.
Definition
The general ledger is the complete set of accounts used to record all financial transactions of an organization. In AP, approved invoices are posted to the GL with appropriate account codes (expenses, liabilities, prepaid assets). The AP subledger feeds into the GL accounts payable control account.
Why It Matters
Accurate GL coding of AP transactions ensures financial statements reflect true expenses by category. Miscoded invoices distort departmental budgets, cost center reporting, and management decisions.
Examples
Invoice GL coding
An office supply invoice is coded to GL account 6200 (Office Supplies), department 100 (Admin), and location 01 (HQ).
AP control account
Each invoice posted creates a debit to the expense account and credit to AP (GL 2100). Payment creates a debit to AP and credit to Cash.
How Nexus AP Helps
Nexus AP uses AI to automatically code invoices to the correct GL accounts, departments, and cost centers based on vendor and expense patterns.
Start Free TrialFrequently Asked Questions
What is a chart of accounts?
The chart of accounts is the structured list of all GL accounts used by an organization, organized by type (assets, liabilities, equity, revenue, expenses).
How does AP relate to the general ledger?
AP is a subledger that feeds into the GL. The AP subledger balance should always match the GL AP control account balance.
Category
complianceRelated Terms
Ready to automate your AP?
See how Nexus AP can transform your accounts payable process.