Accounts Nodes and Nominal Classifications
Table Of Contents
Overview
Khaos Control provides two ways to group accounting transactions and nominal accounts for reporting and analysis purposes:
- Nodes
- Nominal Classifications (also known as Cost Centres)
Although both can be used to organise financial information, they serve different purposes and are configured in different areas of the system.
Nodes
What are Nodes?
Nodes are used to group multiple nominal accounts together for analysis and reporting.
For example, you may wish to group several expense or sales nominal accounts into a single reporting category to make financial analysis easier.
Nodes are configured in:
Unlike Nominal Classifications, which are assigned to individual transactions, Nodes are assigned to nominal accounts.
Common Uses for Nodes
Nodes can be used to:
- Group related nominal accounts.
- Simplify management reporting.
- Create higher-level financial categories.
- Analyse groups of nominal accounts together.
Further Information
For guidance on using Nodes, see:
Nominal Classifications
What are Nominal Classifications?
Nominal Classifications allow individual transactions to be grouped for financial analysis.
These are often referred to as Cost Centres and can be used to track income and expenditure across different parts of the business.
Nominal Classifications are configured in:
For setup instructions, see:
Example Cost Centres
Common examples of Nominal Classifications include:
- Marketing
- Sales
- Training
- Operations
- Administration
This allows expenditure and income to be analysed by department, business unit or activity.
Assigning Nominal Classifications
A Nominal Classification can be assigned in several areas of Khaos Control.
SP Ledger Entries
A Nominal Classification can be assigned to individual entries within the:
This allows supplier invoices and expenses to be allocated to specific cost centres.
Journal Templates
A Nominal Classification can be assigned to individual journal lines within:
This ensures journals are posted against the correct cost centre automatically.
Nominal Transactions
Within:
you can use the right-click option: Assign Nominal Classification
to assign a classification to selected transactions.
Stock Items
Nominal Classifications can be assigned directly to stock items from:
When assigned at stock level, Khaos Control automatically applies the classification when:
- Sales Invoices are posted.
- Purchase Invoices are posted.
This can significantly reduce manual administration.
Suppliers
Nominal Classifications can also be assigned to suppliers from:
This can be useful when all purchases from a supplier should be allocated to the same cost centre.
Example
A supplier that provides marketing services could be assigned to the Marketing Nominal Classification so that invoices from that supplier are automatically analysed under Marketing costs.
Reporting on Nominal Classifications
Nominal Classifications can be analysed through the:
Profit and Loss screen.
This allows you to review profitability, expenditure and other financial information by cost centre.
For more information, see:
Nodes vs Nominal Classifications
| Feature | Nodes | Nominal Classifications | |||
|---|---|---|---|---|---|
| Used to group | Nominal accounts | Individual transactions | |||
| Alternative name | None | Cost Centres | |||
| Applied to | Nominal accounts | Transactions, stock items, suppliers and journals | |||
| Main purpose | Reporting on groups of nominal accounts | Analysing costs and income by department, project or business area | |||
| Configured in | Accounts | Nominal Accounts | System Data | Accounts | Nominal Account Classification |
Summary
- Nodes group nominal accounts together for reporting purposes.
- Nominal Classifications (Cost Centres) group individual transactions for analysis.
- Nominal Classifications can be assigned automatically through stock items, suppliers and journal templates.
- Both features provide valuable financial reporting tools but serve different purposes within Khaos Control.
Used together, Nodes and Nominal Classifications provide powerful flexibility when analysing financial performance across your business.
See Also