First, an account code is prompted for at the bottom of the screen. You may use the <F4-Select> key to look for an existing account to amend, or to check if the account has already been set up with another code.
If the account already exists, its details are displayed for
you to amend. If there is no such
account you must enter all the details for the new account.
For an existing account you may use the <End> key to update the account
details without having to step through the remaining fields — a useful short
cut. For a new account, however, you
have to confirm the data for every field.You can abandon an account without making any changes by keying
<Escape>.
The items which you usually need to enter are as follows:
The size of the account name depends on the size of the item set up for it in the nominal accounts file.The standard size is 25 characters.
Currency
Enter the currency of this account (if left blank then base currency is assumed).
PB indicator
This indicator determines whether the account is a "Profit & Loss” or a "Balance Sheet” account.It can only take the value P for profit and loss, or B for balance sheet item.
This distinction is needed because profit and loss account balances are reset at the end of a year, and also because journals posted into the prior year for profit and loss accounts are treated differently (see Journal Entries later). When you create a new account the system automatically sets the PB flag based on whether the account code is in the income/expenditure range or not – you can override this if required.
Full updating
You can choose whether sales and purchase ledgers are to update the nominal ledger in summary (one journal for the total of each code) or in detail (one nominal transaction for each sales or purchase ledger transaction) — see Nominal Configurationlater. If you have elected to update the nominal ledger in summary, then you can still ensure that this particular account is always updated in detail by replying ‘Y’ here.
This can be helpful for (say) asset accounts, or certain expense categories such as repairs, where you and your auditor need to see this detail within the nominal ledger.
Budget factor
You can define up to five sets of budgeting factors for your nominal ledger, whose purpose is to show the seasonal movement anticipated during the year. The budgeting routines use these to spread the total budget for the year automatically over the periods. Enter a value between 1 and 5 to say which budget factor table you are using for this account. Leave at zero if you don’t wish to use the budget factor facility for this account.See also Budgets and Comparatives later.
Cash account
The cash book application only posts payments and receipts to accounts marked as cash accounts.Enter ‘Y’ to flag this account as a cash account.
Your bank accounts should always be marked as cash accounts. Other accounts you might also want to mark include petty cash, charge card accounts (e.g. American Express and Diners Club) and (say) a suspense account to manage contra postings between your sales and purchase ledger accounts for the same company.
Reconcile
Reply ‘Y’ here if you want to use the cash book reconciliation feature. This can only apply to accounts which are specifically marked as cash accounts.
Tax code
A tax code is only needed if you are using the cash book application too. It acts as the default tax code for those cash book transactions which include VAT. See the cash book sections for more information.
Article ID: 994
Created On: Wed, Jun 27, 2012 at 11:44 AM
Last Updated On: Mon, Jun 19, 2023 at 7:29 PM
Online URL: https://kb.datafile.co.uk/article/full--maintain-accounts-in-full-nominal-994.html