Initial Set Up – Nominal Ledger And Cash Book

Purpose: To create the Nominal Accounts and define Cash and Bank accounts before creating other ledgers and posting opening balances.

Preparation:

• Review the transaction data in your current Nominal Ledger system.
• Is this complete and correct? Review the ledgers for unusual items.
• Resolve as many outstanding issues as possible and adjust the ledgers accordingly.
• Decide whether the Prelude supplied coding structure meets your needs or whether you wish to create your own from scratch.
• The nominal code is in two parts up to 8 characters and the first part will comprise the group – e.g. Fixed Assets say FA or 10 with the whole code for each type – FA01 or 1001 could be Land & Buildings and FA02 or 1002 could be Plant And Machinery. You could extend the code by say 1 – 00401 – Motor Vehicle – Car For MD (with Regn Number)
• The structure therefore needs careful consideration to enable you get the best from the software. Other analysis options are analysis codes and cost centres.

See Add & Edit Nominal Accounts for a description of how to set up your new structure.
Decide on a standard format for standing data (are you going to use upper, lower or proper case entries?).

• Ensure all control and bank accounts are fully reconciled and resolve any outstanding issues.
• Run a Trial Balance as at the transfer date – account balances will form the basis of opening journals.

Nominal Ledger

Create any additional Nominal Accounts including Bank Account – see below – see Add & Edit Nominal Accounts.

Cashbook

Create any additional bank accounts – see Create Multiple Bank Accounts.
Remember that a Bank Account is a specific type of Nominal Account.
So you will need to create a Nominal Ledger Account for any additional bank accounts before adding these to the additional bank account list.