Taking deposit on car sale

Support
1

Hi,
Hoping you may be able to help…
Ive got a used car business and when i receive a deposit on a car sale i am currently doing the following process: Firstly creating an invoice with zero vat for just the deposit amount so that i can tag the transaction in my bank account. Then when the balance of the money is received, I create a separate invoice for the whole amount where i split out the cost i paid so that i am only paying vat on the profit (as its second hand car sales). Then i have to go back into the original deposit, detatch the payment, detag the original bank transaction, delete the deposit invoice, then tag the whole thing against the new full amount invoice (which shows the correct vat). It feels like there must be an easier way??!!
The issue is that when a customer pays by card, the deposit amount is lumped in with my card providers daily takings so if i dont create an invoice for the deposit i cant tag the bank transaction.
I was thinking i could pay the deposit amount into a holding account of some kind and then transfer it that way when i later create the correct invoice but Im not sure this would work?
Any advice would be greatly appreciated…

2

Indeed there is an easy way as follows

  1. Create a new client or for existing client go to client’s profile page
  2. Click on more options at top (4th button) and then click on new prepayment (for deposit amount), you can select bank account, payment method, date even vat rate, save when done
  3. You will see newly created deposit amount under prepayments where it says Account Balance at a Glance, click on amount then view details, here you can send deposit receipt to customer by clicking on more options > Send payment received email.
  4. Now when you are ready to create invoice, create it with full amount and correct vat, once ready click on preview and send, you can send an invoice to customer, then log payment to invoice , a small window will popup, tick very first option Apply from credit (this is the deposit allocation to invoice) and then you can allocate rest of balance as usual.

Hope that helps
Regards

3

Hi, Thank you so much for your response - can i ask how i would tag the incoming payment? for example, I received £500 into my bank, £300 is for daily sales and £200 is for a deposit on a car. I have an invoice for the £300 sales which i can tag but it leaves £200 then ‘unallocated’. When tagging, there is an option to tick “payment on account” but i cant select both the invoices i want to pay and then tick payment on account for the balance - its only one or the other?

Or is ‘unallocated’ effectively doing the same thing as a pre payment?

Thanks
K

4

Hello @KT1

Or is ‘unallocated’ effectively doing the same thing as a pre payment?

That is correct, you could mark it as unallocated then view the invoice and click log payment (and use the available credit).

5

Thanks so much for your help!

6

You can delete 500 entry coming in bank and recording prepayments and logging payments against invoice will bring 500 to your bank

OR you can use holding account to log payments received from invoice and prepayment and tag that 500 from main bank feed to this holding account

7

This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.