Nominal postings

Nominal Postings

In order to use this feature your system needs to be set up to use revenue recognition, and sales invoice header analysis.  It will work with header analysis tied to phase allocations, or with header analysis entered manually.  In addition, only those accounts systems that allow direct interface can be used with this feature.  Currently these are:

Sage Line 50 2016/v22 or higher
Xero
Exchequer
Aqilla

Once enabled in company settings > accounts tab by checking the option "Nominal analysis using recognised values" you can specify the two balance sheet accounts to use:

Note also that you need to select a VAT code to use for these balance sheet entries.

Now when you create a draft sales invoice you analyse the recognised amount, not the billed amount.  The balance goes to the relevant balance sheet account for deferred or accrued revenue, depending on the revenue balance type set for this transaction.  The add balancing entry button will create this new balance sheet entry.  You can add the analysis to sales accounts manually, or let the auto button build everything for you.  When you make the invoice real the sales analysis and the balancing entry will appear in the Sales area of export to accounts.

When you create a draft RR the process is the same.  You analyse the recognised amount to sales accounts, the add balancing entry button creates the reversing entry for the relevant balance sheet account.  When the RR is made real these entries appear in the new nominal journals area of export to accounts:

Nominal journal batches are exported in exactly the same way as sales and purchase invoice batches.  The combination of the balance sheet entries and the adjusted sales account entries created in this way replaces the need for a revenue journal to be created separately and posted manually to your accounts.