A nominal ledger (also known as a general ledger, or as speed codes or cost centres), allows you to keep track of which areas of your business generate what proportion of income and expenditure. Even in a small business, this can be useful for enabling management to decide which areas to concentrate on promoting, and where costs need to be better controlled.

If you do not wish to keep track of this type of data, you can just ignore this section completely, and just use the 'miscellaneous' category wherever a ledger code is required elsewhere in the application. Otherwise, you will need to set up your codes/descriptions here for each type of income/expenditure that your business generates, so that the system can generate a ledger report.

Typically, you would have separate ledger codes for income and expenditure even in the same area of business; however, this is not enforced in nBill - all ledger codes are just lumped together, so it is up to you whether you apply income and expenditure for the same area of business to a single ledger code, or whether you use separate codes for each.

 For Example: If you are a web hosting reseller, you would have costs associated with running your hosting account, but you would also have income from your clients' hosting accounts. Whether you put both costs and income against a single ledger code for 'hosting' is up to you, but typically you would use separate codes for income and expenditure.

To access your list of ledger codes, select Configuration­->Nominal Ledger from the menu as shown in figure 3.5.

Figure 3.5 - Accessing the Nominal Ledger List


This takes you to the nominal ledger list. Click on the 'New' toolbar button, or on a ledger code to create or edit a ledger record. This takes you to the ledger editor, where the following settings are available.

Code

This can be any alpha-numeric value up to 20 characters long, but normally you would use a 3 to 5 digit numeric value, with a range of numbers for income and another for expenditure (eg. 1000 to 4999 for income, and 5000 to 9999 for expenditure).

Description

You can enter anything you like to describe what area of business income or expenditure this code relates to.