Continuing the discussion from Accounting for part-ex vehicles:
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This topic about the P/X vehicle makes sense, but what about a scenario where a customer comes in and goods are exchanged to the value of a specific amount, but no actuall cash transaction takes place?
This has just happened and I don’t know the best way to record it. I assume I will need to introduce a new bank account to handle the exchange values?
Hello @thedrumdoctor
Assume £1,000 sales invoice is raised for the car you are selling.
You log a receipt for £1000 to a dummy bank account called “Part-ex Vehicles” or something similar.
That means you’ll get an accumulating balance on the dummy account for the value of the vehicles you’re selling in as stock.
You can then post balancing money out entries on the dummy account to bring it back to zero and tag those to the “Stock” code (in this case, £1,000).
That worked a treat! Thanks for that, it all makes sense now!
Incidentally, this transaction wasn’t for the car trade but it works just as well for music retail.
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