Sale of an asset with VAT

ChrisCJY · ‎May 26, 2021

Hello. We have recently sold a fixed asset (a vehicle) for very slightly more than we initially paid for it.

The amount we sold it for has a VAT element that I need to account for too.

Do I need to create a new supplier or customer account first? I don't want it to add into my normal sales figures.

Please could somebody advise how I should process this sale in QuickBooks Desktop?

Thanks!

Chris

ChrisCJY · ‎June 01, 2021

Just for other people's benefit in the future, I have now solved this problem (with some help!)

I created a new ACR account for the buyer of the asset, then

I created a new item named "Sale of xxxxx" ensuring that the account type was "fixed asset".

Then I just allocated the cash as normal.

This worked really well, the VAT100 updated, the bank account went up, and there was nothing appearing on the normal sales reports. Result!

View solution in original post

ChrisCJY · ‎May 28, 2021

Hello. Please could somebody possibly help me with this?

Many thanks,

Chris

John C · ‎May 28, 2021

Hi ChrisCJY When you purchased the item you should've created an asset account so you would create a sale using that item again and set the sale price or go to the item and enter it manually. We must make you aware that we're not accountants and that any advice that we provide should be qualified by a professional.There may be a community user that can comment on the thread.

ChrisCJY · ‎May 30, 2021

Hi John,

Thanks for your reply. When we first bought the vehicle, I did create an asset for it. However, every time we have sold a vehicle in the past, we have done a part-exchange (so we have sold an old vehicle and bought a new one at the same time, and through the same transaction going through the bank, ie an outgoing payment on the bank account). However, this is the first time we have only sold a vehicle and not done a part-ex getting a replacement, so I don't know how to put it through QB as it is money coming in. When I double click on the asset for it, it looks to be similar to journal entry. Do I just try to put through the incoming payment as a minus on the asset to reduce it close to zero? If so, how do I add the VAT, is it a manual journal to get it to add onto the VAT100 please?

ChrisCJY · ‎June 01, 2021

Just for other people's benefit in the future, I have now solved this problem (with some help!)

I created a new ACR account for the buyer of the asset, then

I created a new item named "Sale of xxxxx" ensuring that the account type was "fixed asset".

Then I just allocated the cash as normal.

This worked really well, the VAT100 updated, the bank account went up, and there was nothing appearing on the normal sales reports. Result!

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Sale of an asset with VAT