Overview:

Nominal Category in the Chart of Accounts (COA) refers to accounts related to a company’s income and expenses, which impact the profit and loss statement. These accounts track revenues and expenses over a period, resetting at the end of each accounting period.

The Zumzum Financials Chart Of Accounts (COA) has a three-tier structure:

• Nominal Category
• Nominal Sub Category
• Nominal Account

Each Nominal Category has a number of Sub Categories for grouping together Nominal Accounts and for presenting the results of balances on the Trial Balance, Balance Sheet and Profit and Loss reports.

Nominal Category Types

Nominal Categories are records that are meant to group and contain Nominal Sub Categories according to the nature of the Nominal Accounts that they will consist of.

Please note the following limitations

1. Nominal Categories cannot be added or deleted.
2. Nominal Categories Types may not be modified

Below are the Category Types and their category names.

Customise Nominal Categories Names for Each Type

You can customise the Nominal Categories Names on the Nominal Category record so that you may present your own custom labels on the Profit and Loss report and the Balance Sheet report included in the Financial Reports tab in Zumzum Financials.

To customise the Nominal Categories Names, please follow these steps:

1. Go to the Setup (Zumzum) tab and select Nominal Category or search directly for the Nominal Category tab
2. Select the All list view to be able to see your current list of Nominal Categories
3. Click on the Nominal Categories Name you wish to modify
4. Click Edit or double click on the Nominal Categories Name
5. Enter your text value for Nominal Categories Name
6. Click Save

You should not review your Profit and Loss report and your Balance sheet report to confirm your report are behaving as expected.

Nominal Category Groupings For The Profit And Loss Report

The real-time Profit and Loss Report will show the balance of all Nominal Accounts, grouped by Nominal Sub Category for the following Nominal Category Types:

• Sales
• Overheads
• Purchases
• Direct Expenses.

Nominal Category Groupings For The Balance Sheet

The real-time Balance Sheet Report will show balance of all Nominal Accounts, grouped by Nominal Sub Category for the following Nominal Category Types:

• Current Assets
• Fixed Assets
• Current Liabilities
• Long terms Liabilities
• Capital & Reserves

Learn more about the Zumzum Financials General Ledger and how Nominal Category is used in the Chart of Accounts (COA).