Overview
This document defines how Nominal Codes are used in general accounting scenarios.
Details
Each nominal account is given a unique Nominal Code so that it can be uniquely identified.
We look at a particular Nominal Account so we can see what transactions have occurred, within a specified time period, for the relevant Nominal Code.
Nominal Codes will be assigned against invoice, credit and payment transactions etc. so that each Nominal Account will include debit and credit transactions, i.e. amounts that go into the pot, and amounts that come out of the pot.
The Nominal Ledger is simply the name given to the list of the Nominal Codes (and therefore the Nominal Accounts) that are set up within your accounting structure. In other words, it shows all of the different pots into which transactions can be allocated.
Usually the Nominal Ledger will give you the current debit and credit totals for each nominal account as well as access to each of the individual Nominal Accounts so that you can view the individual transactions that make up those totals.