A Recent question posed on the MYOB Communities was:
Our director has bought a car from a car yard and paid a deposit from the company- the balance has been financed through a finance company by chattel mortgate-
do i enter the price of the car in the purchases as I have a tax invoice
pay the deposit through pay bills pay the deposit from the liability account 2-??? which I will have to set up.
pay monthly payments as a spend money transaction as an expense using 6-???
or as a journal entry which i have no idea how to do?
in need of help
Moya
Hi Moya,
I think the answer to this question depends on whether the Finance Co. forwarded the money to your company and then you paid the supplier, or the finance comapny sent the funds directly to the supplier on settlement.
Scenario 1.
Your on the right track, supplier invoice allocate to the asset account as Ron stated, pay the deposit from the bank account. When you receive the funds from the financier reord this as Receive money allocate to a Liability account, eg Car Loan. When you pay the supplier -”Paybills”- amount should close out the purchase. Your left with an asset “MV @ Cost” and a liability “Car Loan”. Payments to the financier go against the Car Loan Account til zero.
Scenario 2.
Going to have to Journal the Asset & Liability at the same time and the deposit amount will go against the Liability and -”Spend Money”- for payments against the loan until zero. The accountant will fix the depreciation.
Hope that helps
For further info check out this post.
About Benn Franzmann
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Loved your write-up Ben!I find it amusing that MYOB is mniaurseg the complexity of its product by using a number of A4 pages of code metric.I’ve been using Saasu for the last 18 months and its great. I’ve also used Xero for a few months as well (for another company) and I found its interface and terminology a lot more confusing.To the everyday business operator, which is simpler to understand:Sales / Purchases (Saasu)orAccounts Receivable / Accounts Payable (Xero)?I would vote for Sales/Purchases every time.I also agree with Paul: MYOB will be under a lot of pressure (mostly from its existing clientbase) to produce a top-notch product.MYOB has spent a lot of time writing desktop software (which typically had an annual release cycle), so lets hope they can transition to an iterative SaaS release cycle where its much easier to deploy new versions.James