I am in the process of trying to set up our sage instant accounts (V18) to save me as much time as possible each month.
We have a vehicle lease for a coach. Initially the lease company took £47,000 which I am told was a £20,000 deposit and the VAT - £27,000 for the 36 month term of lease.
This was followed by a 1st payment of £3610.61 which was £3430.61 (regular net monthly payment) and £150 + VAT documents charge.
The payments will now always be £3430.61 net per month with no VAT as this has already been paid in full.
Could someone please help me with:
1. How to set up and record all the initial journals for this vehicle DR/CR what should go where.
2. If I can then use the recurring option for the remainder of payments and how I should go about this.
Will need to know the cost price of the coach in order to work out how journal. It looks like if £27k VAT was taken that the cost price would have been £162k in total (an expensive coach).
Firstly, you said 28 this time (making 30 with the first and final payments) whereas you said a 36 month term earlier. Using 28, the figures are too low, so I assume 34 (plus first and last) was correct.
On that basis:
The total cost of the coach including VAT is £162,000.
The initial payment/deposit was £47,000 (£20,000 plus the £27,000 VAT).
This means you are being financed for £115,000
There is one payment of £3,610.61 (including the £150 + VAT)
There are 34 at £3430.61
There is a final payment of £3490.61 (including the £50 + VAT).
The total interest is therefore £8501.96
The monthly interest (included in the £3430.61) 236.16 (and just over half a penny - we'll take this into account on the first payment).
The initial postings I would therefore make - assuming the invoice for the coach was posted to the purchase ledger:
1) The deposit/VAT payment of £47,000 from the bank account to the supplier account.
2) The loan amount of £115,000 as a similar payment - ie bank account to supplier account.
3) The loan amount of £115,000 as a receipt from the nominal code you are using for finance to the bank account.
Note: On the bank account, 2 and 3 now cancel themselves out, and you now have a creditor for the £115,000.
Post the first payment manually, in three parts (three lines on the payment window) as follows:
Line/Part 1: The £150+VAT set up fee Line/Part 2: The capital repayment (to the finance code used in #3 above) of £3194.45 (no VAT) Line/Part 3: The interest payment of £236.36 (to the nominal code you will be using for the interest on the P&L account)
For the 35 remaining repayments, set up two recurring entries:
Entry 1: A bank payment for £3194.45 (no VAT) to the finance code. Entry 2: A bank payment for £236.16 (no VAT) to the interest code.
The first date for both of those should be the date of the second payment (I usually just set them up for the start of the month in which they'll fall), and the number of payments set to 35.
When the final payment actually happens, it'll be for £60 more (because of the £50+VAT fee) - just post that as an additional payment when it happens.
Note: All assuming my nasty headache hasn't messed up my ability to do maths.
__________________
Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
