How to Check if a Job Has Been Invoiced Correctly in the Nominal

This guide shows you how to confirm that workshop jobs are invoiced correctly by reviewing the nominal ledger postings. Each type of transaction is listed with its debit and credit codes, along with key notes to help you understand why the posting looks that way.

Why This Matters

Accurate postings ensure correct profit reporting, VAT compliance, and reconciliation between jobs, sales, and cash or debtor accounts. Mistakes here can cause reporting errors and affect financial statements.

Step-by-Step Check Procedure

1. Identify the Job

   • Open the job in the system and confirm whether it is labour-only or labour-and-parts.

   • Confirm whether the customer is cash or credit.

2. Check the Invoice Total

   • Look at the invoice raised for the job.

   • Note the split between labour, parts, and VAT.

3. Open the Nominal Ledger

   • Search for postings linked to the job number or invoice number.

4. Match Debits and Credits

   • For cash customers, check that postings use 1.20.60.14 and 1.20.60.0

   • For credit customers, check that postings use 0.0.60.1

   • Confirm that “Sale of Labour,” “Parts Sales,” and “Output VAT” appear on the credit side.

   • Confirm that “Cost of Labour” and “Parts Cost of Sale” appear on the debit side where applicable.

5. Check VAT Posting

   • Confirm that Output VAT (0.0.70.3) matches the VAT charged on the invoice.

6. Check Job Types

   • If the job is Warranty or Insurance, confirm that postings are directed to the correct debtor account (e.g. 1.20.60.45 – Warranty Debtors).

7. Check Totals Balance

   • Make sure total debits equal total credits for the posting set.

   • Cross-check that the net sales value and VAT in the nominal agree with the invoice

Common Transaction Patterns

1. Labour-Only Job – Cash Customer

Debit

• 1.20.60.14 – Cash in Hand

• 1.20.30.20 – Cost of Labour

• 1.20.60.0 – Service Bankings

Credit

• 1.20.10.20 – Sale of Labour

• 1.20.70.20 – Labour Cost of Sales Accrual

• 0.0.70.3 – Output VAT

• 1.20.60.14 – Cash in Hand

2. Labour-Only Job – Credit Customer

Debit

• 0.0.60.1 – Sales Ledger Debtors

Credit

• 1.20.10.20 – Sale of Labour

• 0.0.70.3 – Output VAT

3. Labour and Parts Job – Cash Customer

Debit

• 1.20.60.14 – Cash in Hand

• 1.20.30.10 – Parts Cost of Sale

• 1.20.60.0 – Service Bankings

Credit

• 1.20.10.20 – Sale of Labour

• 1.20.10.10 – Parts Sales

• 0.0.70.3 – Output VAT

• 1.20.60.90 – Work in Progress

• 1.20.60.14 – Cash in Hand

4. Labour and Parts Job – Credit Customer

Debit

• 0.0.60.1 – Sales Ledger Debtors

Credit

• 1.20.10.20 – Sale of Labour

• 1.20.10.10 – Parts Sales

• 0.0.70.3 – Output VAT