Vehicle sales nominal codes in Navigator are structured to categorise transactions for accurate financial reporting. These codes include information about the branch, department, type of transaction, and description, ensuring clarity and consistency in financial records. This guide explains the structure of vehicle nominal codes and how transactions are recorded for sales and discounts.

Structure of Vehicle Nominal Codes

Example Nominal Code: 1.30.30.30

The code is divided into four main components:

  1. Branch:

    • Identifies the branch associated with the transaction.
    • Example: 1 for Branch 1.

  2. Department:

    • Represents the department.
      • 30: New Vehicle Sales.
      • 31: Used Vehicle Sales.

  3. Type:

    • Indicates the type of transaction.
      • 10: Sale.
      • 20: Discount.
      • 30: Cost of Sale.

  4. Nominal Description:

    • Further describes the transaction category.
      • 30: Vehicle.
      • 31: Factory Options.
      • 32: Dealer Options.

Sale and Discount Transactions

Open Deals (Sales Suspense)

  • When a vehicle is sold but not yet closed, the sale amount is temporarily grouped into the Sales Suspense account.

Nominal Codes for Open Deals:

Nominal CodeDescriptionEntry Type
1.30.70.97Sales Suspense (Sale)Credit
0.0.70.3VAT (Output Tax)Credit
1.30.60.83DebtorsDebit

Closed Deals

  • Once the deal is closed, the system clears the Sales Suspense account and allocates the sale and discount amounts to the appropriate nominal codes.

Nominal Codes for Closed Deals:

Nominal CodeDescriptionEntry TypeAmount (£)
1.30.70.97Sales SuspenseDebit£10,000
1.30.10.30Vehicle SaleCredit£10,000
1.30.20.30Vehicle DiscountDebit£2,000

Example Scenario

  1. Transaction Details:

    • Vehicle Retail Price: £10,000.
    • Vehicle Sale Price: £8,000.
    • Discount: £2,000.

  2. Open Deal Posting:

    • Sales Suspense (1.30.70.97) records the sale amount as a credit.
    • VAT (0.0.70.3) calculates output VAT.
    • Debtors (1.30.60.83) records the customer’s receivable amount as a debit.

  3. Closed Deal Posting:

    • The system clears Sales Suspense and posts:
      • Sale amount to Vehicle Sale (1.30.10.30).
      • Discount amount to Vehicle Discount (1.30.20.30).

Key Notes

  • Sales Suspense: Temporarily holds the transaction until the deal is closed.
  • Accurate Categorisation: Nominal codes ensure proper allocation of sales, discounts, and VAT.
  • Branch-Specific Reporting: Codes allow for precise tracking across branches and departments.

Scenarios Where This Process is Useful

  • Analysing sales and discounts for new and used vehicles.
  • Ensuring accurate financial records for open and closed deals.
  • Preparing reports for departmental or branch-specific performance.