I have a query. If a car dealer is selling a car but the person buying it wants to exchange their car for it but their car is worth more than the one they want to buy. How do I put it through Sage?
I have been treating it as two different transactions but I can't see how to do it. Normally on a part exchange I put the car bought through then do another transaction for the purchase of the part ex car.
are you not already doing it correctly (you say that you treat it as two seperate transactions) in that you are purchasing the car in one transaction and selling a different car in another.
Its only by coincidence that the two are linked with the idea of part exchange getting in the way of matters,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks but what do I do when effectively he is paying to sell his car to the customer? He ended up giving the customer £200 for the car that he got. I don't feel like I'm explaining myself very well. He has car for sale for £3000 someone comes along and wants to part exchange their car which is work £3200. He ends up paying them £200 for their car and giving them his car too. How do I put this through as there will be no money going into the bank account for the sale of his car only £200 coming out.
-- Edited by rachael-pink on Saturday 28th of September 2013 11:25:23 AM
Imagine that he purchased the car at auction. He would be £3200 down. That car then goes on the forecourt (as this car will be) and is sold at a profit.
You need to divorce in your mind the link between the purchased car and the one that is sold.
The double entries would be :
Removed as Matts double entry is better than my one.
Bank is £200 down, stock asset is up £200
There can be no offsetting of stock as that would not show the correct revenue figure,
kind regards,
Shaun.
p.s. amended (in blue) only to remove the double entry as Matts is better.
-- Edited by Shamus on Saturday 28th of September 2013 07:07:59 PM
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
