Setting up sales and purchase nominal codes

Nominal codes are the unique reference numbers given to each nominal account for a business. Accounting transactions use these nominal codes so that money can be accurately allocated to the correct nominal account.

Suggested Nominal Codes

All businesses need to be able to track the financial performance of all parts of their organisation. In order to be able to analyse the performance of different products or services, businesses allocate money into different pots known as nominal accounts. For these to work effectively, you need to use nominal codes.

What are nominal codes?

The list of all of the nominal codes within your accounting structure is called the nominal ledger.

How to add nominal codes with IRIS KashFlow

  1. Go to Settings > Sales Codes or Purchase Codes.

  2. Enter the code name.

  3. Select Add Code.

Nominal codes list

Listed below are some suggested nominal codes that you may need to use in your business:

  • 4009 Discounts

  • 4200 Sale of Assets

  • 4902 Commissions Received

  • 4905 Distribution and Carriage

Codes in the Purchase area would generally include:

  • 5100 Carriage

  • 5101 Import Duty

  • 4902 Commission Received

  • 6002 Sub contractors

  • 6100 Sales Commissions

  • 6201 Advertising

  • 7100 Rent

  • 7102 Water Rates

  • 7103 General Rates

  • 7104 Premises Insurance

  • 7200 Electricity

  • 7201 Gas

  • 7303 Vehicle Insurance

  • 7304 Miscellaneous Motor Expenses

  • 7400 Travel

  • 7401 Car Hire

  • 7402 Hotels

  • 7403 Entertainment

  • 7500 Printing

  • 7501 Postage

  • 7502 Telephone

  • 7504 Office Stationary

  • 7505 Books

  • 7600 Legal Fees

  • 7601 Accounting Fees

  • 7603 Professional Fees

  • 7801 Cleaning

  • 7803 Premises Expenses

  • 8201 Subscriptions

  • 8202 Clothing

  • 8203 Training

  • 8204 Insurance

  • 8205 Refreshments

If you can’t find the code you need in the list, then you should consult your accountant for assistance.