When recording a vehicle purchase in Successware, you will need to post to an Asset account. If you financed any of the purchase, then you will also need a Liability account. Check with your accountant for more information.
Adding New Accounts
If you don't already have an Asset or Liability account setup for purchasing vehicles, follow the steps below to add them.
- From the Main Menu, select Setup and click General Ledger Setup.
- Click the "+ New Account" button in the top right corner.
- Select the Account Class in the drop-down. This often falls in the Current Liabilities section.
- Next, add in a Description for the account.
- Next, 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.
- Select an account number for the new account.
- Check the Active box. Check the Must Print checkbox to print the account numbers on financial reports, even if the balance is zero.
- Click the Save button.
Scenario 1 - Vehicle was Paid in Full at the time of Purchase
This scenario requires that you record a miscellaneous payment in the Account Register.
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.
1. From the Main Menu, select Accounting and click Account Register.
2. In the Select An Account drop-down, select the account you used to purchase the vehicle.
3. Next, select the Payment button at the bottom. This will bring up the payment screen to record the miscellaneous payment.
4. Enter the payment information on this screen.
5. Next you will need to choose the adjust code. Click the Add Item Detail button and select MISC Miscellaneous as the adjust code.
6. After selecting Misc/Miscellaneous, the Account Class options will appear. Account 1703 is often used for the purchase of trucks.
7. Selecting the account class will allow you to choose the General Ledger account needed to record the purchase.
8. Select Print PDF 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 No Down Payment
Follow these steps to post a Journal Entry for the amount financed.
You can access the journal entries option from the Main Menu. Under Accounting, select Journal Entry.
The Journal Entry will record the amount financed to the Asset account and the Liability account for the loan balance.
To debit the Asset account, click the "+ New" button in the top right corner.
Select the account, add in a description, and add in the debit information. Click the Save button when done.
Next, credit the Liability account by clicking the same "+ New" button. Select the account, add in a description, and add in the credit information. Click the Save button when done.
Click the Post button to record the balances to the general ledger.
Scenario 3 - Vehicle was Financed with a Down Payment
This scenario requires that you:
- Post a miscellaneous payment in the Account Register.
- Post a Journal Entry for the amount financed.
Follow the steps in Scenario 1 to post the miscellaneous payment in the Account Register, and the steps in Scenario 2 to post a Journal Entry for the amount financed.
Looking for a more interactive course on Recording a Vehicle Purchase in Platform? Check out our Learning Management System (LMS)! Our courses are available to all Successware users. If you don't have a sign-in for our LMS, contact us at training@successware.com for a free account.