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pdwilliamsltd
Level 1

Hi please help , Where do I book a large purchase, of a vehicle for work ie the deposit first and then the monthly HP payments?

I’m sure it’s not under ‘motor running expenses’ as it’s classed as capital?
3 REPLIES 3
SarahannC
Moderator

Hi please help , Where do I book a large purchase, of a vehicle for work ie the deposit first and then the monthly HP payments?

Hello there, @pdwilliamsltd. Hope you're keeping well.

 

In QuickBooks Online, you can record them by creating an appropriate account.

 

If the Hire Purchase agreement is 12 months or less, create a Current Liability with Loans Payable as the detail type. If the Hire Purchase agreement is more than 12 months, create a Non-current Liability with Note Payable as the detail type. Let me guide you further with these steps:

 

  1. Go to Accounting on the left panel.
  2. Within the Chart of Accounts tab,  click the +New button.
  3. Select the correct account type and detail type of the account.
  4. Click Save and close.

 

Then, create a Tangible Asset account with an appropriate detail type of Vehicles. You can follow the same steps above.

 

Once you have your accounts, create a journal entry. Here's how:

 

  1. On QuickBooks Homepage, go to the +New button.
  2. Select Journal entry under the Other column.
  3. Date the Journal with the day you made the agreement.
  4. On the first line, in the account column select the Tangible Asset account you've created, and add the Assets value to the  Debits Column.  If needed, add a note in the description line.
  5. On the second line, in the account column add your Liability account, the Credits column will auto populate once selected. 
  6. Enter all the necessary information.
  7. Then, hit Save and close.

 

You can check this article for more insights about initial payments: How to record a Hire Purchase agreement in QuickBooks Online

 

Still, I'd recommend reaching out to your accountant for more guidance in handling them. If you don't have an accountant yet, you can open our ProAdvisor Page. Pick an option of what expertise you need to find. Enter your city or zip code. Then, hit Search.

 

Please visit again if you have other concerns with QuickBooks. I'll respond and help you as soon as I can. Take care and stay safe.

Liza Moore
Level 1

Hi please help , Where do I book a large purchase, of a vehicle for work ie the deposit first and then the monthly HP payments?

What do I do if I don't have accounting on the left hand side? Many Thanks

Ashleigh1
QuickBooks Team

Hi please help , Where do I book a large purchase, of a vehicle for work ie the deposit first and then the monthly HP payments?

Hello Liza, thanks for commenting on this post, if you have  one of our small business Quickbooks online accounts and viewing your account on a web browser such as google chrome then you should see the option of accounting on the left hand side at the bottom of the navigation bar. If you dont please send us a screenshot of what you see so we can look more into this for you. 

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