Add a nominal code

The chart of accounts is a complete list of financial codes (nominals) that provide a way of categorising income and expenses into logical groups, similar to the principle of labelling. We provide a default set of codes for you, but you may want to add more.

1. Go to Settings. (If you've switched to the new design, select your initials, then Account Settings.)

2. From the Lists section, select Chart of Accounts. A list of your existing nominal codes is shown.

   

3. Scroll to the end of the list and enter a numerical nominal Code (a default code is created for you) which must be unique.

   

4. Enter a Name for the nominal which will be displayed in any applicable lists.

5. Select the Type for this code which will affect where and how the balance is reported on reports, including your balance sheet and profit and loss.

   • Turnover - money taken by a business treated as revenue. This is usually used for sales.

   • Cost of Sale - money spent (overheads) on generating revenue. A good example could include a wholesale price of product that you will resell.

   • Expenditure - Compared to cost of sales, this is operational or administrative expenditure.

   • Fixed Asset - an asset that cannot be easily converted into cash such as property, vehicles, cash registers, etc.

   • Current Asset/Liability - the account should be treated as a current and variable asset when the balance is a positive, and as a debt (known as a liability) when the balance is negative. This is also used for bank accounts. When your bank balance is positive, it’s an asset, when you’re overdrawn, you’re in debt and it’s a liability.

   • Capital & Reserves - the money shareholders have contributed to the company. Reserves are the profits earned and other resources received by the company that have been kept for the benefit of shareholders.

6. Select the Area where this nominal code can be used. By default, use is restricted to this area only, but access to nominal codes can be enabled is required.

   • Sales Type - can only be used for sales invoices.

   • Outgoing Code - can only be used for purchase receipts.

   • Bank Code - can only be used for bank transactions.

7. Select Add New Code. You can now add further information, then select Update.