Hire Purchase of a Van

Accounting
2

Hi @chrissie1

  1. Create a purchase for the full amount of the van as you would normally Recording your purchases, in the category column, select Motor Vehicles which is the 0050 nominal code.
  2. Raise a credit note against the invoice created in step 1 - Managing credit notes should talk you through this. In the category column change it to Hire Purchase. Make sure this is for the net amount and there is 0% VAT on the credit note.
  3. When you add the deposit into your bank account you can tag this against the original invoice.

I hope all this makes sense but if you have any further questions, please don’t hesitate to ask.