Operational Ledger
An operational ledger is a type of accounting or record-keeping system designed to track transactions and balances in real time as part of an active business process, rather than only for end-of-period financial reporting.
Think of it as the “live” version of the general ledger—focused on the day-to-day operations rather than just historical summaries.
Key Characteristics
Section titled “Key Characteristics”-
Real-time or Near-real-time Updates
- Every transaction (sale, payment, transfer, etc.) is recorded immediately.
- Balances are always up to date, so you can see your exact position at any moment.
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Operational Context
- Tracks not just financial totals, but also operational states—such as inventory levels, open orders, work in progress, or service credits.
- Often integrates tightly with other operational systems (ERP, order management, CRM).
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Granular Detail
- Maintains a full, itemized history of every operational transaction.
- Supports drill-down into the “why” and “how” of a transaction, not just the “how much.”
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Supports Ongoing Decision-making
- Useful for approvals, reconciliations, or detecting anomalies before they become financial errors.
- Can enforce business rules (e.g., preventing overspending or overdrafts in the operational flow).
How It Differs from a General Ledger
Section titled “How It Differs from a General Ledger”| Feature | Operational Ledger | General Ledger |
|---|---|---|
| Purpose | Support daily operations and enforce business rules | Produce official financial statements |
| Timing | Continuous updates | Periodic postings (daily, weekly, monthly) |
| Detail | Transaction-level with operational metadata | Summarized by account |
| Users | Operations teams, product managers, finance ops | Accountants, CFOs, auditors |
Example:
- Bank: The core banking system’s account ledger is operational—it tracks every deposit, withdrawal, and transfer as they happen, and enforces rules like “you can’t withdraw more than your balance” in real time.
- Marketplace: The platform might keep an operational ledger of seller balances, tracking incoming customer payments, platform fees, refunds, and payouts minute-by-minute.