Enter or change default nominal accounts

Find this screen

Open: Settings > Cash Book / Nominal Ledger > Default nominal accounts.

How to

Enter the default profit and loss accounts

On the Profit and Loss tab:

  • Select the Code from the drop-down list for each default account in the list.

The nominal account must have a report category Report Type of Profit and Loss. If it hasn't, the code is highlighted in red.

Before you can save, you must set the Suspense account on the Profit and Loss tab.

Enter the default balance sheet accounts

On the Balance Sheet tab:

  • Select the Code from the drop-down list for each default account in the list.

The nominal account must have a report category Report Type of Balance Sheet. If it hasn't, the code is highlighted in red.

Before you can save, you must set the Accumulated Profit and Accumulated Fund Profit account on the Balance Sheet tab.


Useful info

How the default nominal accounts are used

The following tables explain how each default account is used in Sage 200cloud, the processes they affect, and the whether you can change the default when entering transactions.

What if I don't set a default?

This depends on the type of default accounts. You don't have to set a default but not setting one has different consequences for different types of accounts:

Using cost centres and departments

If you are using cost centres and departments with your nominal accounts, your Profit and Loss transactions post slightly differently.

Once you have set a nominal account with a CC or CC/Dept, as the default nominal account on a customer or supplier account, Sage 200cloud posts to the account Code associated with the default nominal account and the CC/ Dept associated with the customer or supplier account.

For example, a settlement discount for a customer with a default nominal account of 4000 MAN, would post to a Discounts Allowed nominal account, 4008 MAN.

If you are using cost centres and departments with your nominal accounts, you must make sure that you create accounts with all the required CC or CC/Dept combinations for all nominal accounts used on your Profit and Loss.

About report categories

The accounts you choose here must have the correct Report Category as this determines whether the are Profit and Loss Accounts or Balance Sheet accounts.

Report categories are used to create your financial statements. They divide your nominal accounts into Profit and Loss or Balance Sheet and then into groups for reporting on the correct section of each financial statement.

It is very important that you make sure your report categories have the correct Report Type (Profit and Loss or Balance Sheet), and correct Category Type (Asset, Liability, Income or Expense). This is because these determine how the value from your nominal accounts are reported on your financial statements. In addition, the values in all Profit and Loss nominal accounts are set to zero, when you move Sage 200cloud into a new financial year (Year End).

About SOFA categories

SOFA categories are used to group your nominal accounts together to report the income and expenditure of your funds on the SOFA report.

To record funds brought forward from the previous year on the SOFA report, you need to have a special default nominal account for Accumulated Fund Profit.

If you're an Academy, this account must also have a SOFA category of SX99 - Funds Brought Forward, to make sure your brought forward funds are correctly included on the SOFA report.

Year end for your funds

As part of the year end process, the remaining balance of any of your funds needs to be transferred to a balance sheet account. This is account specified as the default for Accumulated Fund Profit.

The remaining balance for each fund is transferred to the accumulated fund profit account with the corresponding cost centre. If these accounts don't exist when you run the year end, then Sage 200cloud creates them for you.

If you're an academy, you must also add the SOFA category for Funds brought forward to each account. This is to make sure your brought forward funds are included on the SOFA report.


Fix it

The code has a red highlight

This means that the nominal account you've selected doesn't have the correct report category Report Type. The report category of the nominal account will have a Report Type of either Profit and Loss or Balance Sheet. So when you select an account, Profit and Loss defaults must have a report category type of Profit and Loss, and Balance Sheet defaults must have a report category type of Balance Sheet.

To resolve this:

  • Change the nominal account selected, or
  • Check that the nominal account has the correct report category, or
  • Check that the account's report category has the correct Report Type.

I see an error message when I try to save

Before you can save the changes made to the default nominal accounts, you must have entered an account for both of the following:

  • Suspense (Profit and Loss tab).
  • Accumulated Profit (Balance Sheet tab).
  • Accumulated Fund Profit ( Balance sheet tab)

What happens when

The default accounts are saved?

The next time any transactions are entered, they are posted using the new defaults you've specified.

Be careful when you change the default nominal accounts, as this will change how your Profit and Loss or Balance Sheet is reported.