Create nominal accounts for a new cost centre or department

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Open: Nominal > Create & Amend Nominal Accounts > Create Accounts for Cost Centre and Department

How to

Create nominal accounts for a new cost centre

Open: Nominal > Create & Amend Nominal Accounts > Create Accounts for Cost Centre and Department

  1. Choose to create a new Cost Centre from Generate for.

  2. Enter a Code and Name for the new cost centre.

  3. Choose the existing cost centre that you want to duplicate as the Source.

    The new cost centre is created for existing nominal accounts that have this Source cost centre.

    If you leave Source blank, the new cost centre is created for existing nominal accounts that have no cost centre code.

  4. To create the new cost centre and associated nominal accounts, select OK.

    Note: This may take some time depending on the number of nominal accounts being created.

Create nominal accounts for a new department

Open: Nominal > Create & Amend Nominal Accounts > Create Accounts for Cost Centre and Department

  1. Choose to create a new Department from Generate for.

  2. Enter a Code and Name for the new department.

  3. Choose the existing department that you want to duplicate as the Source.

    The new department is created for existing nominal accounts that have this Source department.

    If you leave Source blank, the new department is created for existing nominal accounts that have no department code.

  4. To create the new department and associated nominal accounts, select OK.

    Note: This may take some time depending on the number of nominal accounts being created.

Create nominal accounts for a new cost centre and department

Open: Nominal > Create & Amend Nominal Accounts > Create Accounts for Cost Centre and Department

  1. Choose to create a new Cost Centre and Department from Generate for.

  2. Enter a Code and Name for the new cost centre and department.

  3. Choose the existing cost centre and department that you want to duplicate as the Source.

    The new cost centre and department is created for existing nominal accounts that have this Source cost centre and department.

    If you leave Source blank, the new cost centre and department is created for existing nominal accounts that have no cost centre or department code.

  4. To create the new cost centre and department and associated nominal accounts, select OK.

    Note: This may take some time depending on the number of nominal accounts being created.

Useful info

About creating accounts for a new cost centre or department

Use Create Accounts for Cost Centre and Department to quickly create a new cost centre or department and apply it to a range of existing nominal accounts at the same time. The new cost centre and department is created for existing nominal accounts that match the cost centre or department that you select. The new nominal accounts with their new cost centre or department combinations will have the same account and budget settings as the original nominal accounts.

Example

For example, you have a cost centre LON for your London location that you use with a range of nominal accounts. Now you want to add a new Manchester location with cost centre MAN to the same range of nominal accounts used for your LON cost centre. You can use Create Accounts for Cost Centre and Department to create the new Manchester cost centre, and apply this to new nominal accounts copied from all existing accounts with the LON cost centre.

So if you used Create Accounts for Cost Centre and Department with the options:

  • Generate for: Cost Centre

  • Code: MAN

  • Name: Manchester

  • Source: LON

This would create a new cost centre MAN and apply it to all nominal accounts that already have the LON cost centre:

  • For the existing account 01100 LON ADM, a new account is created for 01100 MAN ADM.

  • For the existing account 01500 LON SAL, a new account is created for 01500 LON SAL.

Outcomes

  • The new cost centre or department is added to the list of cost centres or departments.

  • The new nominal accounts are created with your cost centre or department combinations.

    • The new nominal accounts will copy some properties from the original source accounts, such as the account settings and budget details.

    • The new nominal accounts will not copy other properties from the original source accounts, such as account balances, memos and attachments.

Using cost centres

You can use cost centres to segment parts of your business so that you can monitor income and expenses from individual areas in your company. You append a cost centre to profit and loss nominal accounts. Each nominal account has the same Code but different cost centres. For example, if you have several branch offices and you want to be able to produce a P & L for each office as well as one for the whole business, you could create a cost centre for each branch office. You then make sure that every profit and loss nominal account also using an account with the cost centre for each branch.

When you enter transactions, these are posted to the nominal account associated with this cost centre. When you produce your P & L, it reports the total of all accounts with the same code.

Tip: As all these nominal accounts are reporting the same thing, they should also have the same Report Category.

John is setting up Sage 200 within his company. His company is comprised of three branches. He wants to produce a P & L for each branch, as well as his the company as a whole, so he creates three cost centres to represent this. These are:

  • London - LON
  • Manchester - MAN
  • Birmingham - BIR

To make sure the value of each transaction is recorded correctly, John creates a set of profit and loss nominal accounts for each cost centre.

His nominal accounts for his sales are as follows:

Nominal Account Code Cost Centre
4000 LON
4000 MAN
4000 BIR
4001 LON
4001 MAN
4001 BIR

Cost centres are used to represent your funds. You'll need to select a cost centre (fund) for any nominal accounts that will be used to record the income and expenditure of your funds. This is likely to be the majority of your income and expense ( P & L) accounts. Most of your balance sheet nominal accounts will not need to be related to a fund, so these accounts don't need to have cost centres.

If you're an Academy, any nominal accounts linked to a cost centre with a fund type, and a SOFA category are included on the SOFA report.

  1. Create a cost centre for each of your funds.

    A standard set of cost centres has been created for you representing the main funds used by most schools, such as Pupil Premium etc. You can change or add to these as required.

    For each cost centre you specify the type of fund, Restricted, Unrestricted etc. This determines the column fund balances are reported on the SOFA report.

  2. If you're an academy, check your SOFA categories.

    You'll have SOFA categories if you were set to be an Academy when Sage 200 was first set up. These represent the SOFA categories specified in SORP 2015. You won't need to do anything else.

    Each SOFA category determines the section and row that fund balances are reported on the SOFA report.

    If you weren't set to be an academy, then SOFA categories aren't created. You can change this now on the Company Details screen. Once you're set as an academy, the SOFA categories are created for you.

    Open: Settings > Organisational and Financial > Company Details.

    • Select Academy.

  3. Create your nominal accounts.

    Create an account plus cost centre for each nominal account code used to record income and expenses for each fund. If you're also using departments, you'll need a nominal account plus cost centre for each department as well.

    If you're an academy, don't forget to choose a SOFA category for each account.

    Your accounts might look like this:

  4. When you record transactions, you choose the nominal account with required cost centre and department.
  5. When you run the SOFA report, your funds will be reported in the correct section.

Using departments

Departments are codes that you can add to profit and loss nominal accounts, to help keep track of your income and expenses.

Each nominal account has the same code but with different departments.

Each of John's branch offices has two departments, Sales and Administration. As he also wants to record income and expenses by department, he creates two department codes, ADM and SAL. He also applies these to his profit and loss nominal accounts.

His nominal accounts for stationery purchases are shown below:

Nominal Account Code Cost Centre Dept
7502 LON ADM
7502 LON SAL
7502 MAN ADM
7502 MAN SAL
7502 BIR ADM
7502 BIR SAL

Departments are additional codes that you can add to profit and loss nominal accounts, to help keep track of your income and expenses in a particular area.

For example:

  • A primary school might set up a department for each year, from Nursery to Year 6.
  • A secondary school might set up a department for each teaching subject area, such as English, Mathematics and Art.

Each nominal account has the same code but with different departments.

  1. First you'll need to create a department code for each area. A standard set of departments has been created for you that represents the main areas in most schools, such as Maths and English for Secondary schools or Year 1, Year 2 for Primary.

    To change or add new departments:

    Open: Settings > Cash Book / Nominal Ledger > Departments

  2. For each nominal account code used to record income and expense, you'll need a nominal account plus cost centre plus department. The majority of our income and expense accounts will also have a cost centre, so your nominal accounts will look something like this:

  3. When you record transactions, you choose the nominal account with required cost centre and department.
  4. When you run your financial reports, you can group your balances to show income and expenditure by cost centre (fund) and by department.

Using report categories

Report categories are used to group your nominal accounts on your financial statements. Each category determines whether an account is for income or expenditure (Profit and Loss), or for your assets and liabilities (Balance sheet).

Every nominal account must have a report category, as this determines which report the balance of the account is included on and how it's reported.

Adding and amending report categories

When you first set up Sage 200, we provided a set of report categories for you to reflect the broad group of things required by most businessesschools. You can't change or delete these, but you can add additional ones of your own. (Settings > Cash Book / Nominal Accounts > Report Categories).

For maintained schools, these report categories match the CFR codes. For academies, these are categories common for most schools.

Tip: If you add your own report categories, make sure you also add them to your Financial Statement layouts (printed reports) and the Financial Statement Designer Excel reports).

CFR codes for Income and Expenditure
Code Name Type Category Type
CE00 De minimis levels for capitalising expenditure Profit and Loss Expense
CE01 Acquisition of land and existing buildings Profit and Loss Expense
CE02 New construction, conversion and renovation Profit and Loss Expense
CE03 Vehicles, plant, equipment and machinery Profit and Loss Expense
CE04 Information and communication technology Profit and Loss Expense
CI01 Capital income Profit and Loss Income
CI03 Voluntary or private income Profit and Loss Income
CI04 Direct revenue financing Profit and Loss Income
E01

Teaching staff -

Profit and Loss Expense
E02 Supply teaching staff Profit and Loss Expense
E03 Education support staff Profit and Loss Expense
E04 Premises staff Profit and Loss Expense
E05 Administrative and clerical staff Profit and Loss Expense
E06 Catering staff Profit and Loss Expense
E07 Cost of other staff Profit and Loss Expense
E08 Indirect employee expenses Profit and Loss Expense
E09 Staff development and training Profit and Loss Expense
E10 Supply teacher insurance Profit and Loss Expense
E11 Staff-related insurance Profit and Loss Expense
E12 Building maintenance and improvement Profit and Loss Expense
E13 Grounds maintenance and improvement Profit and Loss Expense
E14 Cleaning and caretaking Profit and Loss Expense
E15 Water and sewerage Profit and Loss Expense
E16 Energy Profit and Loss Expense
E17 Rates Profit and Loss Expense
E18 Other occupation costs Profit and Loss Expense
E19 Learning resources Profit and Loss Expense
E20 ICT learning resources Profit and Loss Expense
E21 Examination fees Profit and Loss Expense
E22 Administrative supplies Profit and Loss Expense
E23 Other insurance premiums Profit and Loss Expense
E24 Special facilities Profit and Loss Expense
E25 Catering supplies Profit and Loss Expense
E26 Agency supply teaching staff Profit and Loss Expense
E27 Bought-in professional services -curriculum Profit and Loss Expense
E28 Bought-in professional services - other Profit and Loss Expense
E29 Loan interest Profit and Loss Expense
E30 Direct revenue financing (revenue contributions to capital) Profit and Loss Expense
E31 Community-focused school staff Profit and Loss Expense
E32 Community-focused school costs Profit and Loss Expense
I01 Funds delegated by the local authority Profit and Loss Income
I02 Funding for sixth form students Profit and Loss Income
I03 High needs top-up funding Profit and Loss Income
I04 Funding for minority ethnic pupils Profit and Loss Income
I05 Pupil premium Profit and Loss Income
I06 Other government grants Profit and Loss Income
I07 Other grants and payments received Profit and Loss Income
I08 Income from facilities and services Profit and Loss Income
I09 Income from catering Profit and Loss Income
I10 Receipts from supply teacher insurance claims Profit and Loss Income
I11 Receipts from other insurance claims Profit and Loss Income
I12 Income from contributions to visits Profit and Loss Income
I13 Donations and/or voluntary funds Profit and Loss Income
I15 Pupil-focused extended school funding and or grants Profit and Loss Income
I16 Community focused school funding and or grants Profit and Loss Income
I17 Community-focused school facilities income Profit and Loss Income
I18 Additional grant for schools Profit and Loss Income
Additional report categories for the Balance Sheet and control accounts
Code Name Type Category Type
BS01 Property Balance Sheet Asset
BS02 Office Equipment Balance Sheet Asset
BS03 Furniture and Fixtures Balance Sheet Asset
BS04 Motor Vehicles Balance Sheet Asset
BS05 Stock Balance Sheet Asset
BS06 Debtors Balance Sheet Asset
BS07 Deposits and Cash Balance Sheet Asset
BS08 Creditors (Short Term) Balance Sheet Liability
BS09 VAT Liability Balance Sheet Liability
BS10 Taxation Balance Sheet Liability
BS11 Wages Balance Sheet Liability
BS12 Creditors (Long term) Balance Sheet Liability
BS13 P & L Account Balance Sheet Liability
M01 Bad Debt Profit and Loss Expense
M02 Suspense Profit and Loss Expense
Code Description Type Category Type
BS01 Freehold Property Balance Sheet Asset
BS02 Freehold Property Depreciation Balance Sheet Asset
BS03 Leasehold Property Balance Sheet Asset
BS04 Leasehold Property Depreciation Balance Sheet Asset
BS05 Office Equipment Balance Sheet Asset
BS06 Office Equipment Depreciation Balance Sheet Asset
BS07 Furniture and Fixtures Balance Sheet Asset
BS08 Furniture and Fixtures Depreciation Balance Sheet Asset
BS09 Motor Vehicles Balance Sheet Asset
BS10 Motor Vehicles Depreciation Balance Sheet Asset
BS11 Computer Equipment and Software Balance Sheet Asset
BS12 Computer Equipment and Software Depreciation Balance Sheet Asset
BS13 Stock Balance Sheet Asset
BS14 Debtors Balance Sheet Asset
BS15 Bank Account Balance Sheet Asset
BS16 Deposits and Cash Balance Sheet Asset
BS17 Creditors: Short Term Balance Sheet Liability
BS18 VAT Liability Balance Sheet Liability
BS19 Taxation Balance Sheet Liability
BS20 Wages Balance Sheet Liability
BS21 Pension Balance Sheet Liability
BS22 Creditors: Long Term Balance Sheet Liability
BS23 Reserves Balance Sheet Liability
E01 Curriculum Supplies Profit and Loss Income
E02 Library Services Profit and Loss Expense
E03 Assessment & Examination Profit and Loss Expense
E04 School Fabric Profit and Loss Expense
E05 School Office Profit and Loss Expense
E06 ICT Expenditure Profit and Loss Expense
E07 School Trips Profit and Loss Expense
E08 Headteacher's Contingency Profit and Loss Expense
E09 Governors' Provisions Profit and Loss Expense
E10 Student Bursary Payments Profit and Loss Expense
E11 Exclusion Costs Profit and Loss Expense
E12 After-School Club Expenditure Profit and Loss Expense
E13 Purchases Profit and Loss Expense
E14 Charitable Donations Profit and Loss Expense
E15 Other Expenditure Profit and Loss Expense
E16 Building Projects Profit and Loss Expense
E17 PFI Profit and Loss Expense
E18 Building & Grounds Profit and Loss Expense
E19 Staffing Costs Profit and Loss Expense
E20 Catering Costs Profit and Loss Expense
E21 Heat, Light and Power Profit and Loss Expense
E22 Rent and Rates Profit and Loss Expense
E23 Professional Fees Profit and Loss Expense
E24 Travel Expenses Profit and Loss Expense
E25 Motor Expenses Profit and Loss Expense
E26 Bank Charges and Interest Profit and Loss Expense
E27 Depreciation Profit and Loss Expense
E28 Non-Reclaimable VAT Profit and Loss Expense
E29 Bad Debts Profit and Loss Expense
I01 General Annual Grant (GAG) Profit and Loss Income
I02 Other Grant Income Profit and Loss Income
I03 Income Generated Profit and Loss Income
I04 Donations Profit and Loss Income
I05 Other Income Profit and Loss Income
I06 Sale of Assets Profit and Loss Income
I07 Investments Profit and Loss Income
M01 Suspense Profit and Loss Expense
See also

Actions you can take

Create and amend an individual nominal account

Generate nominal accounts for existing cost centres and departments

Import and export nominal account information

Other useful information

Creating your chart of accounts

Enter or change default nominal accounts

Report categories

Cost centres

Departments