I have a floorplan. I purchase boats from a manufacturer and a financing company covers the boat til sold. How should this be entered?

I used to floorplan tractors so I am somewhat familiar with your situation.  

When you receive a boat you get an invoice for the boat. You should enter that invoice at face value on your books as a Bill, payable to either the manufacturer or, in your case, the finance company. Each month you pay a portion fo this bill for principal and possibly interest. Enter monthly bills for accrued interest and pay those as well when required

Thank you makes sense. So how do I record the sale of the boat?

Hello karen116,

We can record the sale for the boat as Sales Receipt or Invoice. Here's how:

1. Click the + New button in the upper-left and select Sales receipt or Invoice.
2. Enter the details of the transaction.
3. Click Save and close.

You can also use this link for reference: Should I use an invoice or a sales receipt?

We'll be right here if you need anything else.

Did you ever figure out how to record the sale of the boat correctly?

Thanks in Advance .

We appreciate you posting your concern about recording boat sales in QuickBooks Online (QBO), Midwest. We're here to help you record it with some steps and ensure you can keep track of your sales.

We understand the need to track the sales properly in our program. Let's record the sale for the boat as a Sales Receipt or Invoice in QuickBooks. 

We create a sales receipt if your customer immediately pays for products or services. Then, you can record using the Invoice if you plan to get paid in the future for products and services you sell and send your customers an invoice. 

You can add the product or service you’re selling to an invoice and email it to your customer. Also, you'll want to set up an item for the boat and account if necessary. Check this article for details: Add product and service items to QuickBooks Online.

To create a Sales receipt:

1. Click on + New.
2. Choose Sales Receipt
3. Select the customer from the Customer dropdown.
4. Type in the sales info, as well as the payment method.
5. Enter line items for the products and services you sold.
6. Then, hit Save and send to email the receipt.

To create an Invoice:

1. Go to the + New button and select Invoice.
2. From the Customer dropdown menu, select the customer.
3. Fill out all the necessary information for your invoice.
4. Then, Save and close.

You can refer to these articles for more details about the processes:

• Create sales receipts in QuickBooks Online
• Create invoices in QuickBooks Online

Additionally, if your customer makes a payment on the invoice, you record the payments in QuickBooks. See this link reference: Record invoice payments in QuickBooks Online.

You can always post your concerns in the Community. We will make sure to get this handled so you can get to business. Have a good one, Midwest!

Hi, can you answer a few questions? 

What would this look if when I went in to pay the invoice but the amount due (what I ended up paying to flooring company) is higher than what I originally input? Just edit the original invoice?

Does this reflect your balance sheet correctly? Should we be counting this as an asset or inventory?

When I pay the invoice, what category should I pay from? It says to select customer, but it will be paid from my checking account because I already received the money from the customer. I just need my balance sheet to reflect correctly.

What if I pay it off before it is sold? At that point do I record it as an asset?

Does it not matter the cost of the vehicle is combined with interest, fees and insurance? Is it important to separate these?

If you can answer any of these, I would be super appreciative!!!

Thank you!

Sara

I'll answer and shed light on your queries, @SaraAk.

For your first question, excess payments will show unapplied amounts the next time you go to the Pay Bills window. Please make sure not to edit the original invoice. You can create another item (service/non-inventory) instead to record the interest fee. 

To answer your next question, yes it will reflect on your balance sheet correctly if you use the right accounts to pay the bill. Also, it will show on your P&L report if you set up the items well (appropriate income and expense accounts). 

To help you further with this, I recommend checking with your accountant so they can advise if you need to count it as an asset or inventory.

When paying your invoice or bill, you would usually select the company bank account. It depends on the affected accounts on the item setup (Purchasing information). Also, the Sales information (Income account) is affected when the item is sold. If you need further assistance, I still recommend consulting with your accountant.

Lastly, it will matter based on the affected accounts you used to create the expense transaction. If you want to have detailed data on your transaction, it is best to create separate accounts for each item/category.

You might also want to customize reports in QuickBooks Online to personalize or pull up the details you need. 

If you have further concerns about managing your reports or transactions, you can always come back for assistance here in the Community.