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Thread: Capturing financed vehicle in Pastel

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    Smile Capturing financed vehicle in Pastel

    Hi,

    Our company purchased a vehicle which was financed through Absa over a period of 5 years. I desperately need help on how to record this in Pastel.

    Any help would be most appreciated.

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    Platinum Member Neville Bailey's Avatar
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    Hi Lauren,

    There is a trick on how to properly record such a transaction in a General Journal, so that Pastel interprets the VAT correctly as input tax, rather than as output tax. I am assuming that the vehicle is a single-cab bakkie, otherwise you can't claim the VAT.

    If you can send me a scanned copy of the finance agreement, where it details the price, plus extras, plus finance charges, etc, I can send you a screen shot of what your journal must look like.

    You will need to have the following GL accounts in place in the Balance Sheet: Instalment Sale Creditors, Finance Charges in Advance, Motor Vehicles @ Cost. Let me know what your GL account codes are for these accounts.
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
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    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

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    Site Caretaker Dave A's Avatar
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    Neville (or anyone) - when it's a hire purchase agreement, what is the correct VAT treatment?

    VAT on instalments (effectively adding up to VAT on the total instalments value) or
    VAT on original capital value?

    I've always wondered about this one.
    The trouble with opportunity is it normally comes dressed up as work.

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    Platinum Member Neville Bailey's Avatar
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    Quote Originally Posted by Dave A View Post
    Neville (or anyone) - when it's a hire purchase agreement, what is the correct VAT treatment?

    VAT on instalments (effectively adding up to VAT on the total instalments value) or
    VAT on original capital value?

    I've always wondered about this one.
    VAT on original capital value, provided it's a single-cab bakkie.

    VAT on instalments would apply in the case of a lease (Mark, please correct me if I am wrong here).
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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