Enter the nominal account details on the Account tab. These govern how the nominal accounts operates in Sage 200. This information is referred to as the account header information. The Nominal Ledger uses the account header information when posting transactions and printing reports.
You must choose the report categoryFor final accounts production, this is used in conjunction with the category. A single character code determines whether the account is a Profit and Loss item (P) or a Balance Sheet item (B). and account type here.
Posting accounts are the only account type that accounting transactions are applied to. These accounts are reflected in the Trial Balance and include accounts used in your Profit and Loss and Balance Sheet financial statements.
Memorandum.
These accounts are provided for additional analysis. Memorandum accounts act in the same way as posting accounts except that postings to them are deemed to be outside any double-entry bookkeeping. Whenever you are posting transactions to the Nominal Ledger using the journal entry facilities, the total of all postings in the batch needs to balance to ensure accurate double-entry bookkeeping. However, any value associated with a memorandum account does not affect either the debit or credit total of the journal. This enables you to analyse values in more than one way without affecting the balance of accounts or the ledger as a whole. Memorandum accounts are used to enter supplementary information relating to account activities. These accounts are not included in the totals for financial statements
Memorandum accounts must have their own unique category code, this category code must not be associated with any posting account types. Balances on memorandum accounts can be included in your financial statements if required. However, they should be positioned independently in the main body of either the Profit and Loss or Balance Sheet (normally at the end of the layouts).
Group.
Group accounts are used for reporting purposes only. You can associate budgets to these accounts for budget comparison reporting, but you cannot make postings to them.
For budgetary control purposes, the nominal account number is used to associate group accounts and posting accounts. Group accounts can be a parent (higher in the hierarchy) and/or a child (lower in the hierarchy) of other group accounts.
When planning your nominal accounts structure you must consider the way the nominal account number is associated with other accounts, particularly if you intend to use budget reporting. Your Chart of Accounts must conform to the same pattern for group budgeting. We recommend you have a Chart of Accounts in one of the following arrangements:
Example
This example illustrates group budgeting using a Chart of Accounts without cost centres or departments. The accounts are associated with the first account through the account reference 08. Account 09310 is not included.
| Account number | Account type |
|---|---|
|
08 |
Group |
|
081 |
Group |
|
08101 |
Posting |
|
08102 |
Posting |
|
08103 |
Posting |
|
08104 |
Posting |
|
09310 |
Posting |
If you intend to use cost centres we strongly recommend using cost centres on all nominal accounts; not a mixture of cost centres for some accounts and not for others.
Note: The Account and Budget This Year tabs are used to create the nominal account.
Open: Nominal Ledger >Nominal Accounts > Enter New Account | Account.
A/C ref.
Each nominal account is allocated a unique reference. The account reference can be up to 8 characters which can be numbers or letters.
The category code for the account governs where the position of the account in your financial statements. You may want to use the category code as part of your reference structure.
You could prefix all expense accounts with the code EXP followed by a number that identifies the type of expense account and the specific account itself, e.g.: | ||||
EXP2201 | ||||
where | EXP | = | expense account | |
22 | = | rates | ||
01 | = | general rates | ||
An alternative example below uses numbers only: | ||||
71300 | ||||
where | 71 | = | rates accounts | |
300 | = | general rates | ||
Cost centre.
Select the cost centre from the drop-down list.
You must have set up your cost centres first.
Department.
Select the department from the drop-down list.
You must have set up your departments first.
Name.
Enter the name for the account.
Report category.
Select the Report categoryFor final accounts production, this is used in conjunction with the category. A single character code determines whether the account is a Profit and Loss item (P) or a Balance Sheet item (B). from the drop-down list, if the account is a posting or memorandum type.
Note: Ensure you assign the correct Report category code to the account as this is used to determine whether the account values are used in your Profit and Loss or Balance Sheet financial statements. Profit and loss values for each nominal account are set to zero during the Year End routine, making the correct selection imperative.
Select this to allow manual journals to be posted to the account. The account must be a memorandum or posting account.
This allows you to enter journals in the Nominal Ledger to this account. When you enter a journal onto the ledger the transaction must follow the double-entry bookkeeping principle to ensure the debit and credit amounts balance before it is posted.
Select this if you want journal transactions to be posted as one value to the account. The account must be a memorandum or posting account.
If you select Use batch postings, the total value for all entries transferred to the nominal account is shown as one transaction on the account (with a batch total reference) once you have selected to Update Waiting Postings.
The account does not store a full history of individual transactions. To identify which transactions make up the batch totals, you must keep the report produced when the transactions are updated to the account.
If you do not select Use batch postings, then individual transaction values are posted to the nominal account.
Do not select Use batch postings if:
Changing this setting affects postings that are already in the waiting postings file as well as subsequent postings.
Note: If you selected Update Nominal Ledger immediately journal entries are posted, selecting this setting has no effect. All postings create individual transactions on your accounts in that case.
Display A/C balance in nominal selection box.
Select this display a nominal account's balance in all nominal account lists.
Changing this setting for the account controls whether the account balance can be seen or not.
Keep transactions for.
Enter the number of months (up to 36) you want to store transactions on the nominal account. After this time the transactions are archived or deleted.
The default for this is set in the Nominal Ledger settings.
This account must be a memorandum or posting account.
Changing this setting affects transactions the next time a period is closed.
Select the Consolidated account from the drop-down list.
Select this if you intend to consolidate the ledger to a parent company ledger. This links the account to a nominal account in the parent company ledger.
When consolidation takes place, the values in a subsidiary account are posted to the linked parent company ledger account.
To do this the Nominal Ledger and Chart of Accounts for the parent company must be set up correctly for Sage 200.
If the subsidiary nominal accounts do not have a consolidated account code assigned to them, the consolidated values will be posted to the Suspense account, in the parent company ledger.
There are three ways this can be done, as follows:
To continue creating the nominal account, select the Budget This Year tab.
To save the nominal account, click Save.
Steps in this task
Add attachments to nominal accounts
Enter budgets for future years (nominal account)
Enter budgets for this year (nominal account)
Other tasks
Generate a range of nominal accounts for one cost centre
Create a set of nominal accounts
Import Nominal accounts, transactions and budget values
Overview