Question asked by Robert Cameron 9 years ago
just bought on a new van on finance. I've created a purchase invoice on clear books for the invoice for vat purposes, how do I pay the original invoice? do I then create a new invoice from the finance company, no vat on this invoice, to be be able to show monthly repayments?
Hi Robert
Create the bill as usual payable to the supplier*
Great a new bank account [loan account]
Pay the bill using the loan account.
Class the monthly repayments as transfers between your bank and the loan account.
Adjust each month/quarter/year [your choice really] for the interest.
*Vehicles should be listed as an asset on the balance sheet and depreciated appropriately. Ensure you're aware of the rules surrounding capital allowances [i.e. the tax treatment of the purchase] and the potential benefit in kind issues you may have [if LTD]. A couple of links below:
https://www.gov.uk/capital-allowances/overview https://www.gov.uk/expenses-and-benefits-company-vans/overview
Best answerHi Abdul,
I see, in this case, the best workaround would be to create a purchase credit note coded to a non-current liability account. This can then be allocated to the bill of the asset. When repayments come through the bank feed, they can be coded to the non-current liability loan account code to reduce the outstanding amount.
Tommy
but the only issue is that loan account goes into current liability whereas it should be non current liability.
Thank you, all done
You must 