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How to Configure Nominal Codes for My GL

xAssets Fixed Asset Management User Guide
How To

How to Configure Nominal Codes for My GL

This page explains how to configure nominal codes in xAssets so that journal entries post to the correct accounts in your general ledger. Nominal codes are the link between xAssets financial transactions and your accounting system's chart of accounts.

Before You Begin

  • Ensure you are in the Fixed Asset Management profile.
  • Have your organisation's chart of accounts available. Nominal codes must match the account references used by your accounting system exactly.
  • Know which accounts are used for fixed asset cost, accumulated depreciation, depreciation expense, and disposal gain/loss.

Step-by-Step Procedure

Step 1: Plan Your Nominal Code Structure

Before creating codes, plan how they map to your GL. A typical structure includes:

Transaction Type Debit Account Credit Account
Asset acquisition Fixed Asset Cost (Balance Sheet) Bank / Creditors
Depreciation charge Depreciation Expense (P&L) Accumulated Depreciation (Balance Sheet)
Asset disposal Accumulated Depreciation (Balance Sheet) Fixed Asset Cost (Balance Sheet)
Disposal proceeds Bank / Debtors Disposal Gain/Loss (P&L)
Revaluation Fixed Asset Cost (Balance Sheet) Revaluation Reserve (Balance Sheet)

You typically need codes for each asset category. For example, for IT Equipment:

Code Description Type
1100 IT Equipment -- Cost Balance Sheet asset
1101 IT Equipment -- Accumulated Depreciation Balance Sheet contra-asset
4100 IT Equipment -- Depreciation Expense P&L expense
4200 IT Equipment -- Disposal Gain/Loss P&L

Step 2: Create Nominal Groups

  1. Navigate to Financial Setup > Nominal Groups.
  2. Create groups to organise your codes (e.g. "Capital Expenditure", "Depreciation", "Disposal").
  3. Click Save.

Step 3: Create Nominal Codes

  1. Navigate to Financial Setup > Nominal Codes.
  2. Select New Nominal Code from the page-level menu.
  3. Enter the Nominal Code -- this must match your accounting system exactly. If your GL uses 4-digit codes like "4100", use "4100" in xAssets.
  4. Enter a Description (e.g. "IT Equipment -- Depreciation Expense").
  5. Enter a Short Description for compact views.
  6. Assign the code to the appropriate Nominal Group.
  7. Click Save.
  8. Repeat for each nominal code you need.

Step 4: Assign Nominal Codes to Depreciation Types

Each depreciation type can specify which nominal codes to use when posting depreciation entries. Navigate to the depreciation type settings and assign the correct codes for depreciation expense and accumulated depreciation.

Step 5: Configure Multi-Company Nominal Codes (If Applicable)

If you operate multiple companies:

  • Companies can share a nominal code group if they use the same chart of accounts.
  • Companies that use different charts of accounts or report to different GL systems need separate nominal code groups.
  • Configure this on each company record (see Multi Company Environments).

Step 6: Verify the Setup

Before running period-end processing for the first time:

  1. Confirm every depreciation type has the correct nominal codes assigned.
  2. Verify nominal codes match your accounting system exactly.
  3. If you have multiple companies, check that each company's nominal code group contains the required codes.
  4. Produce a test journal by running a trial depreciation calculation and review the output before posting to your GL. This catches mapping errors before they create real accounting entries.

Important Notes

  • Mismatched code formats (e.g. "04100" vs "4100") will cause journal import failures in your accounting system.
  • You can only delete a nominal code that is not referenced by any transactions or depreciation types.
  • Changes to a nominal code's description or group do not affect existing transactions.