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Nominal Codes in Sage: Guide notes!

Sage's nominal codes are numeric with allowance of up to 8 digits long. Practically, Sage software's nominal codes rely on a template provided by Sage.

  • The coding system for nominal account codes is 4 digits long
  • Balance sheet codes come first. They are 0000 to 3999 while fixed assets begin from 0000 to 0999 and current assets from 1000 to 1999 etc.
  • Nominal codes for Profit and loss are from 4000 to 9999, while codes range from 4000 to 4999 and overheads 7000 to 7999.

It is possible to use any of the Sage provided templates. Generally, it's good to create nominal codes from the beginning because:

  • Sage software's nominal codes when in use cannot be changed but can be inactivated. 
  • The “control accounts” cannot be changed. 
  • The right choices will help in reports that you may want. 

When working with an existing Sage nominal that do not fit your companies report needs, it is advisable to re structure your sage software afresh.  

Nominal structure

Use Bank Current Account as the company’s operating account. Change the company preferences from the current company name to the one given in this question. Confirm from your company preferences, under the system tab the button that the copy journal skeleton option is checked.

Do not use the default nominal structure but create a new one as follows:

Trading a/c         Nominal Code

Sales                                       4000 – 4099

Sales/Returns Inwards       7000 - 7099

Purchases                                5000 - 5099

Purchase/Returns Outward    5100 - 5199

Direct Expenses                       6000 - 6099

Profit and Loss Account

Revenue Incomes                   4100 - 4199

Overheads                              7100 - 7199

Balance sheet

Fixed Assets                           0010 – 0059

Invest & Intangible assets    0060 - 0120

Current Assets                       1000 - 1200

Current Liabilities                   2000 - 2099

Capital & Reserves                3000 – 3099

Read more at Sage Depreciation and Accruals: A Guide with Examples

 

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