Initial setup of nominal ledger
No Nominal Journals should be entered, particularly Opening Balances, until this initial setup procedure of the Nominal Ledger is complete in the accounting software.
A number of steps are required to properly setup the Nominal Ledger:
- Review the default Chart of Accounts, change as required.
- Review the default Control Accounts, change as required.
- Assign a Nominal Account to each Analysis Category.
- Assign a Nominal Account to each bank account.
- Generate the Nominal Ledger.
When Generate Nominal Ledger is run it posts all the transactions to the the correct Nominal Accounts. This is particularly important to update Nominal Accounts with Opening Balances.
A standard set up Nominal Accounts are provided in Big Red Cloud. These can be added to or deleted to suit your company. Your accountant will be able to advise you on setting up the Chart of Nominal Accounts for your company.
Once the Nominal codes have been setup and the ‘Generate Nominal Ledger’ run the Nominal option can be switched off again and the Nominal will be properly updated in the background.
Default Chart Nominal Accounts.
To print the Chart of Accounts to screen click on the top menu select Reports / Nominal Ledger / Chart of Accounts in the accounting software.