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Post Info TOPIC: Client With Finance Lease and a kickback
thecat


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Client With Finance Lease and a kickback
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Hi/

One of my clients has just taken out a finance lease for a fixed asset, any pointers on the Sage postings ?

i.e. do you create a code for the balance sheet liability to post the repayments against or use an existing code, do you split out the payments in the p&l so the interest go to bank charges ?

also they got a kickback from the bank for arranging the lease through them, would you post this against the rental payment costs ?

Sorry just cant get my head around this at the moment, none of my clients have ever had a finance lease.

Thanks



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RobH


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Hi,
you would basically post as a debit to asset in Balance Sheet (eg motor vehicle 0050) and credit the liability as 'HP Creditor' or something like that, remember to this is net of any vat is applicable.
When payments are made you debit 'HP creditor' account and credit bank at this time you could also work out the interest and debit 'HP interest' in P&L and credit 'HP creditor'.

The kickback I would probably post as a credit to 'miscellaneous income'.

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Rob
www.accounts-solutions.com
thecat


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Thanks Rob I was in two minds if to post the "kickback" to misc income or to post to the same account as the HP interest to in effect reduce the cost of the loan.


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RobH


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The net effect is the same regarding profit but it would make the interest wrong so best to leave that alone.

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Rob
www.accounts-solutions.com
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