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claytonhousemeat
Level 1

Ive just bought a new van by paying a deposit and then using finance, how do i record this in quickbooks?

 
Solved
Best answer November 26, 2019

Accepted Solutions
JamesC
QuickBooks Team

Ive just bought a new van by paying a deposit and then using finance, how do i record this in quickbooks?

Hello Claytonhousemeat

 

There are a few different ways to record this, and we would encourage you to speak to an accountant to clarify the best way of doing this for your business.

 

You can achieve this by recording the total cost of the van as a bill, including the deposit, Finance and any interest - and then record payments off against it.

 

Alternatively, you can create a journal entry, which changes the asset value of your business to record the van's asset value to your business, and balances this off against a liability account to represent the finance agreement. You can include the deposit value to be paid as part of that liability, and then record a payment against that liability to reduce the overall liability by the deposit amount.

 

If you need to record the VAT payment initially as part of that deposit; there are additional steps needing to be taken to separate the VAT from the transaction and record that correctly.

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1 REPLY 1
JamesC
QuickBooks Team

Ive just bought a new van by paying a deposit and then using finance, how do i record this in quickbooks?

Hello Claytonhousemeat

 

There are a few different ways to record this, and we would encourage you to speak to an accountant to clarify the best way of doing this for your business.

 

You can achieve this by recording the total cost of the van as a bill, including the deposit, Finance and any interest - and then record payments off against it.

 

Alternatively, you can create a journal entry, which changes the asset value of your business to record the van's asset value to your business, and balances this off against a liability account to represent the finance agreement. You can include the deposit value to be paid as part of that liability, and then record a payment against that liability to reduce the overall liability by the deposit amount.

 

If you need to record the VAT payment initially as part of that deposit; there are additional steps needing to be taken to separate the VAT from the transaction and record that correctly.

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