Hi. I have setup a friend (car dealer) with quickfile.
He’s asked me a question i’m not too sure on.
If he sells a car for say 5000 and he receives a car in part exhange, that he gives the customer £2000 back on, how would he account this in invoices?
I am thinking he invoices for the full amount of the vehicle as a sale of asset, then creates a part exchange holdings account. He then tags a £3000 payment to his bank / card / cash whatever, then a £2000 payment to the "part ex holdings account"
Then create a purchase Order to the customer for £2000 (as motor vehicles[asset]) then pays that out from the part ex holdings account.
Is that the correct way to do it?
Thanks
Mike.