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Welcome to the QuickBooks Community family, @Chris1710.
It's my priority to help you record a Hire Purchase agreement in QuickBooks Online.
To track Hire Purchase agreement in the system, you'l need to create a create a Non-current Liability account with Note Payable as the detail type. This way, the rules and the VAT will be accounted in this account.
To do that:
- Click the Gear icon and select Chart of Accounts.
- Select New in the top right corner.
- Click on the Account Type drop-down to select the account type.
- Select the Detail Type to specify the type of account that you want to add.
- Enter the name of the account in the Name field.
- You have the option of including information in the Description field and an amount in the Balance field.
- Click Save and Close.
The following is a brief video to serve as a visual reference:
After that, you'll need to create a Tangible Asset account and generate a journal entry for the agreement. However, in doing this, I recommend reaching out to your accountant. This is to ensure the best course of action for your business. They will also give you the step by step process on how to deal with this situation.
You may utilize this reference attached to give you more insights about the agreement and on how to records its payments: How to record a Hire Purchase agreement in QuickBooks Online.
Should you have any questions, please post a comment, and I'll be happy to help. Wishing you all the best.
