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Nominal codes and the financial reports

When you run your balance sheet and profit and loss reports it's important that they show the correct information in each category. The category structure on these reports is determined by the Chart of Accounts you choose when you run the reports. You can customise your reports by amending or creating new Charts of Accounts.


The default Chart of Accounts categories

These are the default category types used for the balance sheet and profit and loss reports.

Report

Category type

Nominal code range from

Nominal code range to

Profit and Loss

Sales

4000

4999

Purchase

5000

5299

Direct Expenses

6000

6999

Overheads

 

7000

8299

9998

9999

Taxation

Tip: This category is relevant to businesses who are liable for corporation tax.

9001 9001

Balance sheet

Fixed Assets

0001

0059

Current Assets

1000

1250

Current Liabilities

2000

2299

Note: Nominal codes which can be an asset or a liability, for example, a bank account, appear in a separate floating category section under both Current Assets and Current Liabilities. A floating category appears on the balance sheet report as either an asset or a liability depending on the balance.

Long Term Liabilities

2300

2399

Capital & Reserves

3000

3299

When you create a new nominal account, to include it in the correct financial report, you must ensure that the code falls within the correct category range.

If you decide to use your own Chart of Accounts, you need to set the nominal code ranges for each category type. Take care to ensure the nominal accounts needed for each financial report fall within the correct category ranges.


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