Subledger close is the part of the period-end process in which a company finalises each subledger, the detailed records that sit beneath the general ledger for areas such as accounts payable, accounts receivable, fixed assets, inventory and payroll. For each one, staff confirm that all transactions for the period have been entered, run period-end routines such as depreciation or revaluation, and transfer the summarised totals to the general ledger.
The subledger balance is then reconciled to its control account in the general ledger, and differences are investigated and cleared. Once agreed, the period is locked in that subledger so that no further entries can be made to it. Subledgers are closed in a set order, because some feed others, and all must be closed before the general ledger close can be completed. The step is a standard checklist item in the month-end close and is tracked within financial close management.