Record Nominal Payments or Receipts

Use these screens to record money you receive, or have paid, that does not relate directly to a customer or supplier transaction.

Note: Receipts and payments made in respect of customers and suppliers should be processed through the Sales Ledger, Purchase Ledger or Cash Book, where appropriate.

These routines direct the postings to either the Cash Book bank account or the Nominal Ledger bank account, depending on which module you are using to control cash transactions.

Note: You can enter payments or receipts in the Cash Book as well as the Nominal Ledger. If you are using the Cash Book to control cash transactions, you can enter foreign currency transactions using this routine. If you are not using the Cash Book (you do not have any bank accounts set up) and you are using the Nominal Ledger only to control cash transactions then you cannot enter foreign currency transactions using this routine.

You can print a cheque, using this routine, provided the cheque is in your base currency. You cannot print a foreign currency cheque.

When dealing with foreign currency transactions:

  • Select a foreign currency bank account to record the entry.

    The transaction currency and bank currency do not need to match. This means you can record a foreign currency transaction, even if you do not operate a foreign bank account in that currency.

  • Enter an exchange rate.

    Note: Exchange rate variations are handled in the Foreign Bank Revaluation option in the Cash Book.

  • Enter bank charges, if applicable. (Bank charges are in the same currency as the bank account.)

  • If you are using the bank account to control cash transactions:
    • The nominal code associated with the bank account is debited with the value of the receipt, or credited with the value of the payment.

      • Note: Nominal postings are in base currency. If the bank account is a foreign currency account, the default exchange rate set up in your exchange rate table is used to convert the value from the bank's operating currency to base currency for the nominal postings.

    • A receipt or payment transaction is posted to the bank account in the bank account currency.

      • Note: If the transaction is non vatable, only one entry is posted to the bank account, representing the total of the nominal analysis lines.

    • Currency adjustments are posted if applicable.
    • The bank account (for profit and loss) is updated with the value of any charges, if applicable.
  • If you are using the Nominal Ledger to control cash transactions, the bank account nominal code chosen is debited with the value of the receipt, or credited with the value of the payment.
  • Corresponding credit entries to the debit entries, or vice versa, are made in the appropriate nominal income accounts. These are in base currency.
  • The VAT control account is debited or credited with the amount of any VAT, and the information stored for the VAT Return.
  • For vatable payments or receipts: If WIP is in use and enabled for the project, cost postings are made to the WIP account. Any uplift is also posted to the WIP code. The WIP value will show the full value of the cost including uplift. If WIP is not in use or not enabled for the project, the postings will go to the default nominal Expense code on the project item.

To enter a transaction

Open: Nominal Ledger > Enter Transactions or

Open: Cash Book > Payments and Receipts > Nominal >
- Nominal Vatable Receipt.
- Nominal Vatable Payment.
- Nominal Non-Vatable Receipt.
- Nominal Non-Vatable Payment.

  1. Select the Bank account or Nominal account to be used. This depends on which module you are using to control your cash transactions.
  2. Enter the transaction details: Cheque number, Transaction date, Narrative and second reference (2nd ref) if appropriate.

    • Cheque number: This is the default reference that will applied to all of the postings, unless overridden for individual postings. It does not have to be a cheque number, unless you are going to print a cheque straight away for a payment.

      Note: You cannot print a cheque for a foreign currency transaction.

  3. Select the Nominal transactions tab to enter the nominal account and VAT details. Enter a new line for each nominal account or VAT rate. Enter the following:
    1. Code The nominal account to be used for each item, including the cost centre (CC) and department (Dept).
    2. Reference. This will automatically display the cheque number for the entry.
    3. Narrative. This will automatically display the reference entered for the whole entry. You can amend the details on each line, if you're posting to more than one nominal account or VAT rate.
    4. Transaction Analysis code, if applicable.
    5. Transaction date. This will default to the entry date, but you can enter your own date. This is the transaction date that will be added on the transaction details when it is posted to the Nominal Ledger.
    6. Goods value for each line. This is the gross value, and must be a positive figure. The sign of the transaction is determined by its type (payment or receipt). In case of vatable transactions, this may be calculated by the system from the Goods value and VAT value.

    7. VAT code and VAT rate, if dealing with a vatable entry.

      The Goods value and VAT value are calculated or you. These values can be amended. To do this, double-click the boxes and re-enter the values.

If you are entering a payment and want to print a cheque for the payment, select Print cheque on save. When you click Save, an additional screen appears for you to enter the payee details. The cheque is then sent to your printer.

You can choose whether to set this by default in the Nominal Ledger Settings (Options tab).

  1. Entering the Cheque value.

  2. Accepting or amend the Cheque currency.

    If the cheque is in a different currency from the bank account currency, you can change the Exchange rate for the bank account to the cheque currency.

  3. Accepting or amending the Exchange rate. Click on the icon () to the left of the box. This opens the Amend Exchange Rate window.

    If you do not amend the exchange rate, the displayed exchange rate is used for the transaction.

  4. Enter the Bank charges details, if required. This includes other applicable charges. Bank charges are in the same currency as the bank account.

    Note: If you want bank charges to be included in your VAT return, then don't enter your bank charges here. Instead, you should enter the bank charges as a separate Nominal Vatable Payment or Nominal Vatable Receipt, using the appropriate VAT rate.

  5. Enter the loss or gain on exchange, if applicable.

    Note: If a loss has been made, then enter the amount as a positive value, e.g. 125.00. If a gain has been made, then enter the amount as a negative value e.g. -125.00.

Select the Project Analysis tab to enter any project related values. You can analyse the full amount to a project or part of the amount. Use the Nominal & VAT Analysis tab to analyse the remainder.

    1. Select As Cost or As Revenue to post the value of the transaction to the project.

      Note: The Project Item must be set up to contain the cost or revenue option you have chosen.

    2. Select the project.
    3. Select the project item.
    4. The nominal account code, cost centre and department that are associated with the project item will be displayed. You can amend these, if required.
    5. Amend the narrative description, if required.
    6. Select the transaction analysis code, if required.
    7. The goods value and VAT code for the project item are displayed. You can amend these, if required.

If WIP is in use and enabled for the project, cost postings are made to the WIP account. Any uplift is also posted to the WIP code. The WIP value will show the full value of the cost including uplift. If WIP is not in use or not enabled for the project, the postings will go to the default nominal Expense code on the project item.

  • If Use Specified is selected on the cost item linked to the project item in the posting, the WIP account is the WIP code with the specified cost centre and department.
  • If not, then if Split postings between cost centres for balance sheet accounts is selected on the company's System Settings | Operational tab in Accounting System Manager, the WIP account is the project item WIP code and the cost centre and department from the parent project.
  • If Split postings is not selected, the WIP account comes from the project item WIP account and the cost centre and department are blank.

If you entered a receipt whilst you're reconciling your bank account, you can click Save & Create Rule to create a bank feeds rule for this transaction, to save you entering it again the next time.

See Bank feeds rules.

See also

Steps in this task

Journal entries

Prepayments and accruals

Enter previous year journals

Reference

Set up integration for project item types

Revalue a foreign currency bank account

Current Transactions

Archived Transactions

Options (NL Settings)