In an inventory sense, the ledger records products accepted and sold.
An inventory ledger is a detailed record kept by a business to keep track of inventory movements. This can apply to an inventory of products or a list of holdings and their owners. The intended meaning is usually clear from the context. In either case, the record can be used in tax returns and other financial statements, and also creates a useful resource for internal reference where people may want detailed information about current inventory.
In an inventory sense, the ledger records products accepted and sold. When shipments arrive, staff can enter important details such as product quantity, value, and arrival date. The ledger can include a section to note when materials go on sale. At the time of sale, the inventory ledger may be updated to reflect the new information. These records help businesses keep track of inventory movement so they can make decisions about what to buy and when.
Most commonly, this term is used to talk about shareholder registries. Companies that issue shares are required to maintain a ledger with current ownership information. This benefits shareholders, who want to be sure they are the owners of record, especially in the case of a dividend where the company makes payments to everyone on the ledger. Additionally, companies may want to track who owns shares to spot trends, such as someone trying to buy a majority stake.
Listed companies are subject to a number of regulations to protect shareholders and the general public. This includes provisions on inventory books. The company may need to follow a specific format and include specific information. Regulators may request to inspect documentation, such as the inventory ledger, to confirm that it is accurate and to look for issues such as conflicts or out-of-date information. Shareholders also need information on how to update their registration so they can ask the company to change details when buying or selling shares.
Companies often designate a team member or department to handle shareholder communications and administration. This includes updating the share ledger, following up on reports related to loss and theft of certificates, and providing publications to shareholders upon request. Shareholders of a company have the right to review certain financial documents, receive annual reports, and request information on who is currently in charge and where the company is located. Designating a department to provide these services can help with regulatory compliance.