What is a Vendor Ledger Entry in Business Central?

The detailed transaction log in BC recording every financial event related to a vendor — invoices, payments, and credit memos.

Vendor Ledger Entries in Business Central are the detailed record of every financial transaction with a vendor. Each posted purchase invoice, payment, credit memo, and refund creates one or more vendor ledger entries, forming a complete history of your financial relationship with that vendor.

The Vendor Ledger Entries page shows the running balance, open vs. closed entries, due dates, and remaining amounts. This is the go-to place for AP teams to investigate vendor balances, verify payment status, and reconcile vendor statements.

Entries are linked through the 'Applies-to' mechanism — when a payment is applied to an invoice, both entries reference each other. This makes it easy to see which invoices have been paid, which are overdue, and what the net balance is at any point in time.

Related terms

• Vendor (Supplier) — A company or person from whom you purchase goods or services, represented as a Vendor Card in Business Central.
• Purchase Invoice — A document recording a vendor's bill for goods or services received, used for accounts payable processing in Business Central.
• Purchase Credit Memo — A document used to reverse or correct a posted purchase invoice, handling returns, price adjustments, or billing errors.
• Payment Terms — Codes defining when and how vendor invoices must be paid, such as Net 30 or 2/10 Net 30, configured on vendor cards.
• General Ledger — The core accounting record in Business Central where all financial transactions are ultimately posted and stored.

How Zentriq helps

Zentriq's AI tools automate many of the manual processes around vendor ledger entry in Business Central. Learn about the Zentriq Agent or try Zentriq PunchOut to see how AI simplifies procurement in BC.