System Type and Account Type Nominals
Listed below are the System Type and Account Type nominals used when creating new nominal accounts, see How To: Create Nominal Accounts. It is important to choose the correct System Type and Account Type as this will determine where the nominal balance is displayed, for example Balance Sheet or P&L, or where in the system the nominal can be mapped to.
System Type
User-created nominal accounts must be set to use one of the following system types:
| Name | P&L or Balance Sheet | Notes |
|---|---|---|
| Sale (default) | Profit & Loss | A sale of goods or service. Note: if the nominal account is of System Type 'Sale' it is necessary to tell Khaos Control which account to use when posting, as sales accounts can be broken down in the various ways specified by the account type for example by stock types, by company classifications or by countries. Sales are captured in the Gross Sales section of the Profit & Loss. |
| Sales Discount | Profit & Loss | The amount of a reduction of goods or service. Sales Discount are captured in the Gross Sales section of the Profit & Loss. Cost Of Sale / Purchases |
| Purchase | Profit & Loss | The act of providing a payment in exchange for a product or service. Purchase are captured in the Cost Of Sale / Purchases section of the Profit & Loss. |
| Cost of Sale | Profit & Loss | The total cost to the business of the goods sold or service provided. Accountants call this revenues. Cost of Sale are captured in the Cost Of Sale / Purchases section of the Profit & Loss. |
| Expense | Profit & Loss | Costs incurred in the process of earning revenue, measured by the cost of goods and services consumed in the operation of the business. Expenses are captured in the Expenses section of the Profit & Loss. |
| Fixed asset | Balance Sheet | A tangible long-term asset such as land, buildings or machinery, held for use rather than for processing or resale. |
| Asset Depreciation | (This option is a legacy field and no longer used in Khaos Control and remains solely to maintain backwards compatibility with older versions of Khaos Control.) | |
| Mis-postings | (This option is a legacy field and no longer used in Khaos Control and remains solely to maintain backwards compatibility with older versions of Khaos Control.) | |
| Other Income | Profit & Loss | Income from activities not in the normal course of business; such as interest income or profit from sale of assets. Other Incomes are captured in the Expenses section of the Profit & Loss. |
| Finance | Balance Sheet | Appears in the "Financed By" section of the Balance Sheet; examples are Share Capital and Investment Capital. |
| Bank Control Account | Balance Sheet | Used for bank accounts, see How To: Create a New Bank Account. |
| Current Asset | Balance Sheet | Assets that are expected to be converted to cash within one year. These include cash, accounts receivable, and inventory. Current assets are found on the balance sheet. Within Khaos Control they are used only for bank account nominal codes. |
| Current Liability | Balance Sheet | The sum of all money owed by a company and due within one year. |
| Customer Opening Balances | Balance Sheet | Used when entering Customer Opening Balances, see How To: Enter a customer or supplier opening balance. |
| Supplier Opening Balances | Balance Sheet | Used when entering Supplier Opening Balances, see How To: Enter a customer or supplier opening balance. |
Account Types
User-defined nominals must be set to use an Account Type which is used by the system to determine which area the nominal is mapped to. There is a hierarchy to the Account Types which is listed below:
| Hierarchy | Name | Nominal Type | Area |
|---|---|---|---|
| 1 | Company | Sales and Purchase Nominal(SP Ledger Purchase Only) | The nominal code is set against the company record from the Customer (or Supplier) screen The Supplier PNominal will only apply to SP Ledger entries and will NOT affect stock postings. |
| 2 | Stock Item | Sales and Purchase Nominal | The nominal code is set against the stock item record from the Stock screen. The Stock Item PNominal will only apply if the [ Stock | Options] COS Excluded Item is ticked when purchased. |
| *3* | Brand Note: this option must be enabled, please email Development. | Sales Nominal | The nominal code is set against the brand in System Data screen, see How To: Setup Sales Nominals by Brand. |
| 4 | Stock Type | Sales Nominal | The nominal code is set against the stock type record from the System Data screen. |
| 5 | Company Class | Sales Nominal | The nominal code is set against the company class record from the System Data screen. |
| 6 | Country (default) | Sales Nominal | The nominal code is set against the country record from the System Data screen. |
| 7 | Manufacturer | Sales Nominal | The nominal code is set against the manufacturer record from the System Data screen. |
Nominal Account Hierarchy
The nominal account hierarchy is the order that the system will go through when deciding which nominal to post a sale or purchase to (e.g. when issuing a sales order it will look to see if the customer has a nominal set against them and post against this; if there is no nominal set against the customer the system will see if the stock item has a nominal set and post to this; if there is no nominal here it will look to see if there is a nominal against the manufacturer of the stock item, etc).
This means that sales nominals need to be carefully thought about. For example if you set up nominals against stock types and then set different nominals against countries, the system would never post to the country nominals as it would always come across the stock type nominals first.
Sales Nominal Hierarchy
The following flow chart displays the sales nominal hierarchy structure within Khaos Control. Even if a sales nominal has been setup it must be applied to the relevant section within Khaos Control. For example if you create a 1230 - UK Sales Nominal with and Accounts Type of Sales and a System Type of Country, it must also be mapped to a country within System Data before it can work.
For "How To" based on the example mentioned above please see How To: Create Sales Nominal Accounts for UK, EU and WW Sales.
