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Part exchanging vehicles


#1

Hi. I’m due to part exchange my van against a new one and the garage are requesting a purchase invoice for my vehicle. My question is, how do I mark the purchase invoice for my van I give the garage as being payed when I don’t actually receive any payment it is just deducted from my purchase invoice for the new van.


#2

It sounds to me like a standard case of “contra invoicing”, where you invoice the garage for the amount they’re “paying” you for the old van, they invoice you for the cost of the new one and you offset one against the other.

The standard way to do this in QuickFile is with a dummy bank account - you can create a holding account for th purpose or if it’s just a one off then you could use your drawings/Director loan account. You mark your sales invoice as paid into this account, then immediately create a payment back out for the same amount to part-pay the purchase. This should leave the unpaid balance on the purchase matching the amount you actually handed over and this can be tagged as normal.


#3

Thank you Ian. Very straight forward a clear explanation.