# Sage nominal codes

dziumbrauskaite
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**42**
Hey guys,

Can someone help me with nominal codes in Sage. Im not good at choosing the right code...

As I understand for the sales I need to use 4000 nominal code, but when it comes to choose account code for cash sales zero-rated and cash sales standart rated, then Im confused... and which code then I need to use for VAT?

Thanks!!!

Can someone help me with nominal codes in Sage. Im not good at choosing the right code...

As I understand for the sales I need to use 4000 nominal code, but when it comes to choose account code for cash sales zero-rated and cash sales standart rated, then Im confused... and which code then I need to use for VAT?

Thanks!!!

0

## Comments

585Sage codes are organied in a very logical way

If you think about the Balance Sheet, there are 5 classes of accounts

Fixed assets ( sage accounts starts with 00 and thet are between 00 and 999)

Current Assets ( sage accounts starts with 1000 and thet are between 1000 and 1999)

Liabilities & Current Liabilities ( sage accounts starts with 2000 and thet are between 2000 and 2999)

Capital ( sage accounts starts with 3000 and thet are between 3000 and 3999)

If you think about the Profit & Loss, there are 4 classes of accounts

Sales ( sage accounts starts with 4000 and thet are between 4000 and 4999)

Purchases ( sage accounts starts with 5000 and thet are between 5000 and 5999)

Direct expenses for Sales and Purchases ( sage accounts starts with 6000 and thet are between 6000 and 6999)

Expenses ( sage accounts starts with 7000 and thet are between 7000 and 7999)

EXPENSES - Subdivided as

Wages ( sage accounts starts with 7000 and thet are between 7000 and 7099)

Property ( sage accounts starts with 7100 and thet are between 7100 and 7199)

Heat & Light ( sage accounts starts with 7200 and thet are between 7200 and 7299)

Motor Expenses ( sage accounts starts with 7300 and thet are between 7300 and 7399)

Travel & Entertainment ( sage accounts starts with 7400 and thet are between 7400 and 7499)

Office Expenses ( sage accounts starts with 7500 and thet are between 7500 and 7599)

.........and so on

Sales are sales and therefore has to be allocated to a/c code 4000. You can classify different types of sales to different a/c codes but not for different VAT types. ( Vat type of sales information is easily obtained from printing Sales/Purchase day book reports)

When posting the sales invoices, it is there that you have to be carefulf to identify the correct rate of VAT.

42654T1 for standard rate, T0 for zero rated, T9 for non taxable supplies/services such as bank charges/insurance.

6,9701,624If you look at the help on Sage they tell you which codes to use and when.

6,97042The question: Write on the analysis the account code(s) you intend to use in the main ledger.You should distinguish between cash sales and credit sales by using different revenue codes in the main ledger. The invoices already processed refer to credit sales.

Analysis of cash sales

Account code £

Cash sales: zero-rated ? 11000

Cash sales: standart rated ? 28500

VAT ? 1700

Maybe some of you can help me?...

Thank you!

6,970794794Normally what sdv has said would be correct, you wouldn't ordinarily post different sales types to different sales codes purely based on whether they were cash/credit/zero rated etc. However, I know where you're coming from with this question as it's in one of the Unit 35 papers. What they're asking you to do in that paper isn't something that you would normally do on Sage, I don't think anyone at the AAT has ever used Sage before.

42Hey Coojee,

yes, that question is of the Unit 35... Like you I agree with sdv. But for this question I probably would need to set diferent account codes for different sale types...

4,071Agree with this. What an odd question.

However:

You can just allocate the next code number if you want to differerentiate between cash sales, credit sales etc.

In fact, by default, Sage is set up as

4000 Sales Type A

4001 Sales Type B

4002 Sales Type C

4003 Sales Type D

You can just rename the accounts.

Ditto with purchases, use 5000, 5001, 5002, 5003 etc

The VAT on these sales will automatically get posted to the VAT control accounts, only the net appears in the P&L nominal codes.

6,970The petty cash sale as there are no customers listed needed????