Sales incorrectly allocated

I’ve just had a quick look at my Profit and Loss Account and realised to my horror that the vast majority of our sales this year have been allocated to nominal code 4000 ‘General Sales’, even though on the Sales invoices I’ve been very careful to allocate everything to the correct nominal sub-code e.g 4001 ‘Bar Sales’ or 4007 ‘Catering Sales’.

Could someone explain to me in general terms what I might be doing wrong to cause this as if I’m working incorrectly I’d like to put things right before I get into any further difficulties.

Many thanks for any suggestions.

Hello @MarshfieldCC

If you’re setting the nominal on the sales invoice, it should set all OK. The only time this may change is if you then select an item (the first column on the invoice lines) after selecting a different nominal.

Do you have mixed items on your invoices? If so, the quickest way to resolve this would be to just journal it to the correct code. If you have individual invoices, you can bulk recode them, but you would need to know what invoices they are.

These posts may help:

Thanks Matthew, that looks helpful… yes, I do have mixed items on many of my invoices so bulk recoding may not be an option. I’m not really familiar with journaling but I’ll attempt to get to grips with things over the next few days.

Thanks again!

Jonathan

No problem!

You would basically correct the entries for the invoice. So a typical outstanding invoice would create these entries:

You would reverse the entry for 4000 and move it to the correct nominal. In this example, where £100.00 is moved to 4000 for the invoice, I’m going to move it to 4001. In this case, my journal would be this:

For the 15/03/2018 (the date of the invoice, and the journal), my entries for 4000 now shows this:

As for the date, it could be done for year end, or if it’s easier do it on a monthly or quarterly basi - whatever suits you better. As the P&L is typically for a year, year-end should be fine. If you have lots of monthly invoices, you may find monthly journals easier to manage.

Hope that helps!

Fantastic! I’m sure that’ll help and I’ll shout if I have any further questions… many thanks!

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