Each nominal account must have a major heading assigned to it. Each major heading will define the accounts as either Profit and Loss type account, or as a Balance Sheet type account.
The major heading then further defines where the nominal account will appear in the P&L or Balance Sheet enquiries and reports.
Major heading 1 to 6 are profit and loss accounts while major heading 7 to 12 are balance sheet accounts.
Editing major headings is done from the System module which is Security Profile permission driven.
Note: Each time you create a new nominal account, you must select a major heading.
When a database is created, 12 default major headings and 12 reporting codes are automatically created by the system which cannot be deleted.
One of these reporting codes is automatically assigned to each nominal account record that is created when a new database is created and this will be the reporting code that matches the major heading assigned to that account.
The default Major Headings and Reporting Codes created are as follows:
Code | Major Heading and Reporting Code Name | Type |
1 | Sales | Profit and Loss |
2 | Cost of Sales | Profit and Loss |
3 | Other Income | Profit and Loss |
4 | Overheads | Profit and Loss |
5 | Finance Charges | Profit and Loss |
6 | Tax | Profit and Loss |
7 | Fixed Assets | Balance Sheet |
8 | Intangible Assets | Balance Sheet |
9 | Current Assets | Balance Sheet |
10 | Current Liabilities | Balance Sheet |
11 | Long Term Liabilities | Balance Sheet |
12 | Capital Employed | Balance Sheet |