module 5 - nominal ledger v7.0

8/6/2019 Module 5 - Nominal Ledger v7.0

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Module 5: The Nominal Ledger


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Contents

Add a Nominal............................................................................................ 3

Add a Journal.............................................................................................. 5

Dealing with VAT on a journal .................................................................... 8


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Add a Nominal

Liquid Accounts comes with a series of default Nominal Codes in its initialconfiguration. If you need to add additional Nominal Codes, follow theinstructions below.

Select the Company menu tab at the top of the screen. Hover your mouse over theNominal Set-Up menu option and then select the Maintenance option.

Press the New account button.

At the bottom of the screen, a set of boxes will appear that need to be populated with the nominal code details.


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Code This is the Code you wish to use for this Nominal. It can have numbers orletters or any combination of the two up to 20 characters.

Description This is the description of the Nominal Code.

Group This is a pull down option and you have to pick the group that theNominal code will sit within. If you are in any doubt, either find a similar nominalthat is already populated and use the same group or alternatively consult youraccountant.

Show in Sales If this box is ticked, the new nominal will show in the sales ledger.

Show in Purchases - If this box is ticked, the new nominal will show in the

purchase ledger.

Once you have entered the details of the new Nominal Code, press Save . The newNominal Code is now created and can be used.


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Add a Journal

This help document will show you how to add a journal on Liquid Accounts.

Select the Nominal menu tab at the top of the screen and then choose the Journals menu option.

On the next screen ensure that the correct financial year is selected and thenpress the Go to journals button.

If this is the first time a journal has been entered, the screen will show as in thediagram below.

If a journal has been entered previously, the last journal will be shown. To select aprevious journal, select a date from the drop down and then select a referencebelow.


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In order to enter the new journal, you must now enter the date and a reference forthe journal. When you enter the new date, the screen will then update, giving youa blank journal screen containing your new date and reference.

You must now input the journal entries. To enter the first one, press the New entry hyperlink.

A line will now appear for you to complete

Detail Insert the description of the line for the journal. For example, PAYE.

Net The net amount.

VC - This is the VAT code. Select the correct one from the pull down.

VAT This will show the VAT amount calculated based upon the net, multipliedby the VAT rate chosen.

Debit This is the nominal code for the account to be debited, if applicable.

Credit - This is the nominal code for the account to be credited, if applicable.


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Once you have entered the details, press the Insert button below the line

Please note that once a line has been entered, the total of the lines of the journalappears in the Total box. Also, the post button will disappear until the Total isequal to zero. This is to prevent an unbalanced journal being entered.

To enter another line on the journal, press the New entry hyperlink and repeat theprocess.

Once you have completed the journal, the Total should equal zero and the post

button will re-appear. To post the journal press the Post button.

Once the journal has been posted, the screen will refresh. Each line will have a Y in the posted column and it will say Posting complete .


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Dealing with VAT on a journal

If there is VAT on a journal, then it has to be entered in a special way to ensurethat VAT is charged or credited to the VAT control account.

The system works like this:

Debit account: The NET amount is debited to the account chosenThe VAT is charged to the VAT control

Credit account: The TOTAL (Net + VAT) is credited

In normal circumstances, this is all that will need to be done with a standardpayment.

If you need to enter a credit (receipt) to VAT, then it should be entered as aNEGATIVE, with the Debit account being the Sales account so that:

Debit account: The net will be credited to this account (as the amount wasnegative)The VAT will be credited to the VAT control

Credit account: The TOTAL (Net + VAT) will be debited

module 5 - nominal ledger v7.0

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