A payment ledger keeps records of disbursements.
A payment ledger is a type of accounting record that helps you track payments that are disbursed for specific purposes. It is not uncommon for such a ledger to be created for a project or event, making it very easy to track all expenses and disbursements related to that specific activity. Depending on the nature of the event or project, the ledger can serve as a means of documenting the funds received on the project, as well as any funds that are paid out to manage the expenses associated with the activity.
Considered a basic approach to accounting, a payment ledger usually focuses on receiving payments related to a specific activity. For example, if students associated with a specific class choose to sell candy bars in order to raise money for a project, there is a good chance that a ledger will be kept during the activity. The details included in the ledger will usually list the buyer’s name, the number of units purchased, the total amount collected for the purchase, and often even the buyer’s shipping address.
Other payment ledger examples might include other types of data. Information such as the invoice amount and number can be included, the payment method used to settle the invoice and even the date payment is offered can be included in the detail. In situations where partial payments are received on account, this amount and the payment date are also likely to be included in the ledger detail. As with most types of accounting records, the purpose of the ledger is to provide accurate and concise information about financial transactions so that there is a permanent history of events, with no doubts about what happened and when those events occurred.
The complexity of the payment ledger will often depend on generally accepted accounting principles and any guidelines followed in creating and executing the project associated with the activity recorded in the ledger. This means that a payment record kept to track activities associated with a fundraising project by a local house of worship can be somewhat simplistic compared to the record kept by a multinational company that is launching an operation in a new location. . As long as the details are accurate and can be verified with supporting documentation and meet all the necessary standards for the type of activity involved, the ledger can be a very useful means of tracking the transactions associated with the effort.