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Which Nominal Codes to Use for the Current Portion of Hire Purchase Obligations

Shane McLoughlin
  • Updated

If you receive the error "HP and finance leases total does not agree with the total of the maturity analysis", the balances posted to the relevant HP and finance lease nominal codes do not agree with the maturity analysis entered in the Compliance Database.

The current and non-current portions must be correctly reflected in both the nominal ledger and the maturity analysis.

The figures used in the validation come from two areas:

Nominal Ledger

Postings for HP and finance lease obligations are held in the relevant nominal codes.

The validation error may reference codes within the 921 to 922.02 range, as well as 842 and 854, depending on the type of obligation and chart of accounts being used.

Compliance Database

The maturity analysis is entered separately under:

Compliance Database > Liabilities, Provisions and Deferred Income > Creditors > 1 Year

Check the HP and Finance Lease Maturity section.

Bright Accounts Production compares the balances in the nominal ledger with the maturity analysis. If the figures do not agree, the accounts may fail validation.

Splitting current and non-current obligations

The liability should be split between the amount due within one year and the amount due after more than one year.

To review the nominal ledger:

  1. Open the Nominal Ledger.
  2. Review the balances on the relevant HP and finance lease nominal codes.
  3. Identify the amount due within one year based on the repayment schedule.
  4. Post the current portion to the appropriate current-portion nominal code.
  5. Post the remaining liability to the appropriate non-current nominal code.

Enter the maturity analysis

Once the nominal ledger balances have been correctly split:

  1. Open Compliance Database > Liabilities, Provisions and Deferred Income > Creditors > 1 Year.
  2. Open the HP and Finance Lease Maturity section.
  3. Enter the relevant repayment and suspense amounts.
  4. Check both the current year and comparative year figures.
  5. Confirm that the maturity analysis agrees with the corresponding nominal ledger balances.

Refresh the accounts and check again.