Subledger accounting is the working method built around a subledger, and that entry explains what a subledger is and how it relates to the main books. This page describes what people mean when they talk about subledger accounting as an activity or a system.
In subledger accounting, individual transactions are recorded in a specialised ledger, for example one for each customer, supplier, loan or card account, and only summarised totals are posted to the general ledger. The general ledger then holds a control account whose balance must equal the sum of the subledger. This keeps the main books short while preserving the detail needed for statements, billing and audit.
The phrase is used heavily in banking and payments technology. Core banking systems, card processors and wallet platforms each keep their own subledgers of customer balances, and a product called a "subledger accounting engine" translates those operational events into accounting entries according to set rules. Problems in subledger accounting usually surface as differences between operational balances and the books, which are found through reconciliation. Older textbooks often use the equivalent term subsidiary ledger, and the interface that carries totals into the main books is described under general ledger interface.