Default nominal accounts

To manage default nominal accounts

Note: When entering nominal accounts for the first time, you must set the Suspense account on the Profit & Loss tab and the Accumulated Profit account on the Balance Sheet tab.

Open: Nominal Ledger > Utilities > Ledger Set Up > Default Nominal Accounts.

Enter the default profit and loss accounts

  1. Select the Profit & Loss tab.
  2. To enter an account number, click on the Code column for the default account.

    You must enter a number for the Suspense account. Entering numbers for other accounts is optional.

    Note: If you have specified individual nominal account codes for your currencies in the Currency and Exchange Rate settings, the default nominal account may be overridden when you enter transactions.

  3. If you want to use a single specified nominal account for your Discount Allowed and Discount Taken transactions, select Yes from the Use Specified drop-down list.

    Sage 200 will then use this account for all of those types of transactions.

Note: The following default Profit and Loss Nominal Accounts are no longer used by Sage 200: PAYE (Project Accounting), and Net Pay (Project Accounting).

Enter the default balance sheet accounts

  1. Select the Balance Sheet tab.

  2. To enter an account number, click on the Code column for the default account.

    You must enter a number for the Accumulated Profit account. Entering numbers for other accounts is optional.

    Creditors Control

    Purchase ledger transactions are automatically posted to the creditors control account.

    For example, when you post an invoice, the total invoice value is credited to the Creditors Control account. The purchase account for the supplier is debited with the net goods value and the Default VAT Input account is debited with the VAT amount.

    If you always want to use a single specified nominal account as the creditors control account, select Yes from the Use Specified drop-down list. Sage 200 will then use this nominal account for all purchase ledger transactions.

    The nominal account used for your purchase ledger transactions depends on whether you have chosen split posting between cost centres for balance sheet accounts in the System Settings for your balance sheet postings and whether you have chosen the Use Specified option.

    Debtors Control

    Sales ledger transactions are automatically posted to the debtors control account.

    For example, when you post an invoice, the total invoice value is posted to the Debtors Control account. The sales account for the customer is credited with the net goods value and the Default VAT Output account is credited with the VAT amount.

    If you always want to use a specified nominal account as the default debtors control account, select Yes from the Use Specified drop-down list. Sage 200 will then always use this nominal account for all sales ledger transactions.

    The nominal account used for your sales ledger transactions depends on whether you have chosen split posting between cost centres for balance sheet accounts in the System Settings for your balance sheet postings and whether you have chosen Use Specified.

    Unauthorised Purchases.

    This is the Balance Sheet liability account where unauthorised purchase invoices are posted.

    Bank Account

    This is the nominal Balance Sheet account for the current bank account.

    Default VAT Input.

    This is the default Balance Sheet account where all input VAT is analysed, unless overridden by a supplier account using a particular VAT rate code.

    Default VAT Output.

    This is the default Balance Sheet account that all output VAT is analysed, unless overridden by a customer account using a specific VAT rate code.

    Note: The Default VAT Input and Default VAT Output may be overridden if you have specified individual nominal account codes for your VAT rates in Accounting System Manager.

    Bad Debt Provision

    This is the Balance Sheet account where bad debt provisions are posted (Sales Ledger only).

    Prepayments

    This is the Balance Sheet asset account to which prepayment The process of deferring expenditure and income to the accounting period in which it is incurred. This usually involves setting up an asset on the Balance Sheet for bills paid in advance, and then releasing that asset by instalments to the accounting periods in which the service is actually provided. journals are posted.

    Accruals

    This is the Balance Sheet liability account to which accrual The process of matching expenditure or income to the accounting period in which it was incurred rather than paid; for instance, a rent cheque or utility charges. journals are posted.

    Accumulated Profit.

    Note: You must enter an account for Accumulated Profit.

    This Balance Sheet account is updated at the year end with the retained profit. This nominal account is where the Year End process puts the sum of the Debit-YTD and Credit-YTD figures from the Profit and Loss accounts before setting them to zero. On the Year End report, the account, cost centre, department and name is shown and the final debit or credit amount calculated by the process.

    Revaluation Reserves

    This is the Profit and Loss account to which the total of revalued reserves are posted from either the Sales Ledger or Purchase Ledger.

    Stock

    This is the stock asset account for the Balance Sheet. Transactions are posted from the Stock Control, Sales Order Processing and Purchase Order Processing modules when stock items are issued and received, thus affecting the valuation of stock.

    Note: The following default Balance Sheet Nominal Accounts are no longer used by Sage 200: Project Accounting Control, Work In Progress, Sales Retentions, Purchase Retentions, At Cost (Fixed Assets), Accumulated Depreciation, HP/Lease Obligation, Sales Asset Control, and Purchase Asset Control.

  3. If you want to use a single specified nominal account for your Creditors Control and Debtors Control transactions, select Yes from the Use Specified drop-down list.

    Note: If you choose Yes to use the specified nominal account, you will not be able to use the system setting to Split postings between cost centres for balance sheet accounts.