The Type and Category fields of the "Wizard" use your [current default] CoA (Chart Of Accounts) to find a suitable nominal code in the selected range to use; they are not assigned to a nominal, but rather a nominal is "assigned" to them:

• Type is one of the Description fields (the 5 from the "Profit & Loss" tab, and the 5 from the "Balance sheet tab"), using the Demo data:

• Category is one of the areas defined in the breakdown area under the selected Type, eg for Purchases:

Using the Wizard and selecting Type=Purchases, Category=Stock, it finds the first unused nominal code in the range 5200-5299:

The Nanny Wizard is holding your hand to make it easier to try to not create nominals willy-nilly outside of where they should be in the CoA.  However, you can still create a nominal anywhere you want:

I've selected Type=Purchases, Category=Stock, but still entered a "Purchases" nominal code (5005 falls in the "Purchases>Purchases" range of 5000-5099 above); the Nanny Wizard doesn't force the selected range on you!

Using "New" just lets you enter the nominal code and Name, assuming you know where it belongs in the CoA; entering the details:

N/C = 5005

Name = New Nominal Account

will mean that that nominal belongs to the Type=Purchases, Category=Purchases part of the CoA as it is the range of nominals 5000-5099 which are defined for that "Type>Category" combination.

If you just use the "New" way, it will be included in whatever range of the CoA it fits, so creating any nominal with a code in the range 5100-5199 above, eg 5150, will mean it belongs to the "Purchases>Purchase Charges" area of the CoA (/Wizard).

However, as you can type any nominal number into "New" (and the Wizard!), it is possible to create nominals outside the CoA.

If you edit your CoA, there is a "Check" option which checks that all nominals are in the CoA somewhere, and that there are no overlapping ranges in the CoA - if there are any such errors, it will list them for you to correct them.  (Sometimes you may actually want an incomplete CoA for reporting on specific areas only.)

The Type and Category fields of the "Wizard" use your [current default] CoA (Chart Of Accounts) to find a suitable nominal code in the selected range to use; they are not assigned to a nominal, but rather a nominal is "assigned" to them:

• Type is one of the Description fields (the 5 from the "Profit & Loss" tab, and the 5 from the "Balance sheet tab"), using the Demo data:

• Category is one of the areas defined in the breakdown area under the selected Type, eg for Purchases:

Using the Wizard and selecting Type=Purchases, Category=Stock, it finds the first unused nominal code in the range 5200-5299:

The Nanny Wizard is holding your hand to make it easier to try to not create nominals willy-nilly outside of where they should be in the CoA.  However, you can still create a nominal anywhere you want:

I've selected Type=Purchases, Category=Stock, but still entered a "Purchases" nominal code (5005 falls in the "Purchases>Purchases" range of 5000-5099 above); the Nanny Wizard doesn't force the selected range on you!

Using "New" just lets you enter the nominal code and Name, assuming you know where it belongs in the CoA; entering the details:

N/C = 5005

Name = New Nominal Account

will mean that that nominal belongs to the Type=Purchases, Category=Purchases part of the CoA as it is the range of nominals 5000-5099 which are defined for that "Type>Category" combination.

If you just use the "New" way, it will be included in whatever range of the CoA it fits, so creating any nominal with a code in the range 5100-5199 above, eg 5150, will mean it belongs to the "Purchases>Purchase Charges" area of the CoA (/Wizard).

However, as you can type any nominal number into "New" (and the Wizard!), it is possible to create nominals outside the CoA.

If you edit your CoA, there is a "Check" option which checks that all nominals are in the CoA somewhere, and that there are no overlapping ranges in the CoA - if there are any such errors, it will list them for you to correct them.  (Sometimes you may actually want an incomplete CoA for reporting on specific areas only.)