I figured it out - maybe this will help others:
Normally, a van sale would be accounted for as described in Sale of vehicle - #3 by Badger
Since the van sale was linked together with the finance settlement by the ocmpany purchasing the car, including a balance payment to the company, all other attemts with recording this failed except the following.
1. Create a purchase invoice
Create a purchase invoice adding three entries as follows:
- Van sale price S against nominal “(0050) Motor Vehicles”
- Finance Settlement F against nominal “(2321) Van purchase financing” (or similar in the 23xx range to show up as long-term loan)
- Transaction Fee F against nominal “(5000) General Purchases” ( I couldn’t find anything better fitting)
This creates an invoice with an amount to pay that is identical to the balance transfer B - tag the balance transfer from the current account to this invoice.
Attach the original invoice for record keeping, and then this step is done.
2. Create the Finance Settlement journal
To balance the long-term loan nominal to £0.00, add a simple journal to record the interest paid as follows:
- Debit from “(7903) Loan Interest Paid”
- Credit to “(2321) Van purchase financing”
3. Take the van off the books
As indicated above, normally, a van sale would be recorded against “(4200) Sales of Assets”, and then the full asset value (minus depreciation) drawn down to the same SoA nominal, usually creating a loss in the income nominal.
Since Quickfile didn’t allow me to use “Sale of Asset” in the purchase invoice I had to create in step 1 above, I had to tag the sale against nominal “(0050) Motor Vehicles” instead. As a consequence the journal to take the van off the book and create the loss is slightly different:
- Debit from “(4200) Sales of Assets”
- Credit to “(0050) Motor Vehicles”
Conclusion
I had to work around some Quuckfile limitations, so the transactions and journals recorded are different from what normally would happen, but the result is the same:
- The finance agreement is paid off
- The van is taken off the books
- The loss is recorded appropriately in the Sale of Assets nominal.
I attached all relevant invoices and agreements, including plenty of notes in Quickfile so that everything is properly documented.