Default nominal accounts

About default nominal accounts

The default nominal accounts are used to post transactions from all the modules in Sage 200 to the appropriate Profit and Loss and Balance Sheet nominal accounts in the Nominal Ledger.

Once you have created your nominal accounts, you must specify the nominal account numbers to use for each default nominal account. You must do this for both the Profit and Loss and the Balance Sheet. We recommend that you create all your nominal accounts and specify the defaults before processing any transactions in Sage 200.

• If you do not enter valid nominal accounts for each default nominal account, this can result in transactions being posted to the Suspense account.

• You cannot process any transactions until you have set the default Suspense account.

• If you do not expect to post transactions to a particular default nominal account (such as Discount allowed), we recommend that you enter the Suspense account nominal account code in these boxes so that each box is filled.

How the default nominal accounts are applied to transactions in Sage 200

The default nominal accounts are used in two ways when processing transactions in Sage 200:

• The default nominal accounts are automatically displayed when creating accounts (such as bank accounts, customer accounts or supplier accounts) and when entering transactions. If required, you can change the nominal accounts used.

  For example, when you create a new customer account in the Sales Ledger, the Default Sales nominal account is automatically applied to the relevant box. If required, you can change this.

  The nominal account specified in the customer account is automatically added to sales transactions that you create for this customer. It can be changed on individual transactions, if required.

• Transactions are automatically posted to the default nominal accounts and are not displayed when the transactions are entered. This is usually the case for the Balance Sheet default nominal accounts.

  For example, when you post invoices in the purchase ledger, the transactions are posted to the nominal accounts specified as the Default VAT Input account and Creditors Control account.

Note: You can only assign a posting type account as a default nominal account.

Manage default nominal accounts

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

Before you begin, you must have created all the nominal accounts that will be specified as your 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.

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.

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. Example of how Sage 200 chooses which nominal account to use Use cost centre breakdown Default Nominal Account settings PL Transactions posted to ...   Nominal Account Cost Centre Department Use Specified   No 25100     No 25100 No 25100     Yes 25100 Yes 25100     No 25100 with the cost centre and department from the customer account. No 25100     Yes 25100 No 25100 ADM ADM Yes 25100 ADM ADM Yes 25100 ADM ADM Yes 25100 ADM ADM
   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. Example of how Sage 200 chooses which nominal account to use Use cost centre breakdown Default Nominal Account settings SL Transactions posted to ...   Nominal Account Cost Centre Department Use Specified   No 14100     No 14100 No 14100     Yes 14100 Yes 14100     No 14100 with the cost centre and department from the customer account. No 14100     Yes 14100 No 14100 ADM ADM Yes 14100 ADM ADM Yes 14100 ADM ADM Yes 14100 ADM ADM
   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 Reserve	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.

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.