Part exchanged vehicle sales invoice

[lewis]

How do I mark it as paid. It is taken off the purchase invoice for the new vehicle

[rhc]

Hi,
Have a look here which is may useful

https://support.quickfile.co.uk/t/accounting-for-part-exchange-vehicles/18309

Part exchange on a vehicle

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 accoun…

[lewis]

Hi, I am at the other end of the deal. I do have an invoice from the motor trader for the whole amount without the deduction of the sale of my part exchange vehicle. So I am not sure how to enter the part exchange sale invoice as paid. Its been discounted from my purchase invoice. Don’t know what to do.

[Bagpipe]

Probably the easiest way is deal with the transactions through the cash account as follows…
Create a cash payment for the amount of the part exchange. If you entered the purchase of the vehicle as a purchase invoice, then tag as a supplier payment and clear the invoice balance.
Create a cash receipt for the same value. Assuming you haven’t raised a sales invoice for the p/exchange, then tag as something else and post to the asset code for vehicles. If you have raised a sales inv for the p/e then tag as a customer receipt and allocate against the invoice.

[lewis]

Thanks for trying, don’t understand what you are saying.