We have purchased a vehicle (4x4 Truck) the Vat was paid as a deposit and the balance covered by finance loan. How do I pay the supplier of the truck using the loan so it shows as paid as cant see that the VAT is included in the VAT return as invoice says part paid.
Finance company will be paid by monthly direct debit but surely in theory the supplier has been paid by finance company before collection.
Do I list the Finance company as a supplier?
You can book truck invoice as normal, make sure vat reclaimed in as per invoice, tag deposit paid from whatever source you use say main bank account, then create another loan account and tag invoice paid from it. Now monthly installments can be tagged as interbank transfer from main bank to loan account. End of year any interest adjustments can be journaled in
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