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Definition
The sales ledger is the accounting record of all a business's sales made on credit and the payments received against them — in effect, the master list of who owes you what. It is the source of your accounts-receivable and debtor-days figures.
In plain terms
Every credit sale and customer payment flows through the sales ledger, so a well-kept ledger is the foundation of credit control: it tells you exactly which invoices are outstanding and how overdue each is.
Why it matters
A clean, current sales ledger is essential for collecting cash and for any invoice-finance facility. See accounts receivable and purchase ledger.
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