Create the dividend nominal codes

First you need to create the dividend nominal codes. If you're using the Sage default nominal codes, create the following codes.

If you already have these nominal codes, follow the Record the proposed dividend section.

N/C	Name	Management Report	Section of Report
3201	Dividends	Balance Sheet	Capital & Reserves
2290	Dividend Liability	Balance Sheet	Current Liabilities

1. Go to Nominal codes then select New.
2. Complete the Nominal Record details as follows:
   • N/C box - enter the new nominal code. For example, 3201
   • Name box - enter the nominal code name. For example, Dividends
3. Click Save then Close.

Now check your Chart of Accounts to ensure the new nominal codes you created show in the correct sections.

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Record the proposed dividend

Recording the proposed dividend amount shows as a liability on your Balance Sheet report. It also updates the Capital and Reserves section.

1. Go to Nominal codes then select Journal entry.
2. Enter a date, reference and any details for the transaction to record the proposed dividend. For example:

   N/C	Name	Details	T/C	Debit	Credit
   3201	Dividends	Proposed Dividend	T9	5000.00
   2290	Dividend Liability	Proposed Dividend	T9		5000.00

3. Click Save then click Close.

You've now recorded the amount of dividend to pay. Once it's paid, you can now pay the dividend to record the payment.

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Next steps

You can now record the dividend payments.

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