I recently bought a property from auction and paid £1250 fees and £5000 deposit which is taken off the purchase price of the property. Purchase price is £40000, deposit £5000, remaining amount to pay £35000. I have received an invoice from the auction house for the £1250 fee which I have logged as a purchase accordingly.
I am not too sure how to log the purchase of the property. I am planning to create a separate purchase on Quickfile for the property but not sure what to put in the supplier name as the initial £5000 went to the seller via the auction house and the remaining £35000 will go to the seller via my solicitor.
Can someone advise on how to log the deposit and the remaining £35000 as a purchase?
Providing there’s no loan/finance involved in the property purchase, I’d treat it just like any other purchase.
My preferred method would be to create a new supplier and name it the property address (or other identifiable name). Then from your bank, tag the 5k deposit as a prepayment to the supplier you’ve just created. When the invoice is received from the seller, input it on the supplier account. Then the 5k can be allocated to the invoice along with any other payments you make by logging a payment.
Regarding any invoices for fees, I would create separate supplier accounts for the auction house and solicitor.