nominal codes

[netty]

I need to create a nominal code for a gift to an employee which code is best to use and how do you create one. new to all this.

Thanks

[brucedenney]

I suggest you look at this.

http://support.makingithappen.co.uk/whatnominal.htm

Where it goes, depends on how management wants to view the gift.

Is is a cost of employing someone and these gifts are common, in which case it is like health insurance?

Is is a gift to a disabled member of staff to help them through hard times, in which case it is charity?

Is it a gift as some sort of sales reward, in which cast it could be cost of sales?

[netty]

it was a leaving (retirement) gift.

[brucedenney]

Sounds like an employment cost to me then.

Personally I would lump it in with wages, but if they want it separate then create a separate account. Of course where it goes depends on what sort of work (s)he did and where her(his) wages got posted normally.