Set up category codes

The category code is an alphanumeric reference that must be applied to posting and memorandum type nominal accounts.

The category code is used to:

• Determine whether the nominal account value is reported on the Balance Sheet (Assets and Liabilities) or Profit and Loss (Income and Expenditure).
• Group the nominal accounts under the headings specified in the Balance Sheet and Profit and Loss layouts.

The values for each Profit and Loss nominal account are set to zero when you run the Year End routine. It is particularly important to set the categories correctly as either Profit and Loss or Balance Sheet to prevent the loss of valuable information when the Year End routine is invoked.

Plan how you can use category codes to group similar types of accounts. For example, use a range of codes for all income accounts. If you use a random method of coding, you may find it more tedious to plan your Profit and Loss and Balance Sheet financial layouts as well as your nominal account records.

As the category code governs the position of the nominal account in your financial statements you may prefer to design the Profit and Loss and Balance Sheet financial statements first before creating the nominal accounts.

In the same way you manage your nominal accounts you need to manage the category codes. Therefore you will create, amend and delete category codes as and when appropriate using the Nominal Ledger.

You cannot create category codes while creating new nominal accounts.

You can also import your report categories from outside Sage 200.

Open: Nominal Ledger >Utilities > Ledger Set Up > Report Categories.

1. Click Add.
2. Enter the Code reference. This is the unique code that will identify the category.
3. Enter a Description of the category.
4. Specify the Report Type for the category from Profit and Loss or Balance Sheet.
5. Click OK.

Open: Nominal Ledger >Utilities > Ledger Set Up > Report Categories.

1. To amend a category code, click on the Code and enter the new code.
2. To amend the category description, click on the Description and enter the new description.
3. To amend the category report type for the category, click on Report Type and select either Profit and Loss or Balance Sheet from the drop-down list.
4. Click OK.

Open: Nominal Ledger >Utilities > Ledger Set Up > Report Categories.

1. Select the category code from the list.
2. Click Delete.