Recording the Purchase of a Vehicle
All scenarios require posting to an asset account, 1703 is commonly used for Autos/Trucks. (Confirm this with your accountant.)
If you financed any of the purchase, then you will also need a liability account. (Check with your accountant for this as well.)
Scenario 1 - Vehicle was paid in full at the time of the purchase
This scenario only requires that you record a miscellaneous payment from the register account used to pay for the vehicle. For the adjust code in the miscellaneous payment you will choose the asset account you have setup for vehicles. (Check with your accountant to confirm the correct general ledger account.)
From the register account select the payment button at the bottom, this will bring up the payment screen to record the miscellaneous payment.
Enter the payment information for the payment.
Next you will need to choose the adjust code, right click and select new item, then select MISC Miscellaneous as shown in the picture above.
After selecting Misc/Miscellaneous you will then choose the Account Class for the general ledger you need.
Selecting the account class will allow you to choose the general ledger account needed to record the purchase.
Select Print to print your check or post to record the transaction. This will record the payment in the register account as well as asset account selected.
Scenario 2 - Vehicle was financed with a down payment
This scenario requires that you post a miscellaneous payment for the down payment from the register account and a journal entry for the amount financed.
You will follow the steps from the first scenario to record the down payment.
Please see steps below to post the journal entry:
You can access the journal entries option from the main menu.
The Journal Entry will record the amount financed to the asset account and the liability account for the loan balance. Debit the asset account and credit the liability account.
Click the Post to record the balances to the general ledger.
Scenario 3 - Vehicle was financed with no down payment
This only requires posting a journal entry.
Please follow the previous step for posting the journal entry.
Adding New Accounts
- In the Accounts tab of the General Ledger Setup, Click Account Class to choose the Account Type then Click New Account. Each account type has categories of accounts within it that are grouped by account number.
- Click on the drop-down arrow and choose the category of account you want to create. When you select a category the account number you choose for the account will be limited to those available for that category.
- Highlight the account number for the new account and double-click, press Enter, or right-click and select Add Account.
- Enter the name for the new account and click Save.
NOTE: Select the Must print checkbox to print the account numbers on financial reports, even if the balance is zero.