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Thread: Instalment Sales Creditor

  1. #1
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    Instalment Sales Creditor

    Hi All,
    If I may ask a question, My employer purchased Vehicle with SBSA MVF and would like to know how to capture transaction on Pastel V14.
    Purchases = R690 2383.60
    Initial Fee = R6842.11
    VAT = R97 591.29
    Fin Charges = R209 596.60

    ACB repayemnt is R16 794.81
    Additional Service fee R57.00 monthly

    Please assist

  2. #2
    Platinum Member Neville Bailey's Avatar
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    Nov 2010
    Morningside, Durban
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    You will need to ensure that you have the following general ledger accounts set up:

    - 5600/000 Instalment Sale Creditors (financial category Other Long Term Liabilities)
    - 5610/000 Finance Charges in Advance (financial category Other Long Term Liabilities)
    - 6200/000 Motor Vehicles - Net Value
    - 6200/010 Motor Vehicles @ Cost
    - 6200/020 Motor Vehicles - Accum Depre
    - 3200/000 Bank Charges

    To capture the initial transaction, capture a General Journal as follows:

    - Line 1: Period XX, Date XX, 5600/000, Ref XX, Purchase of vehicle, 05 Capital Goods, 786871.73 Incl, C, 6200/010
    - Line 2: Period XX, Date XX, 5600/000, Ref XX, Initial Fee, 01 Standard Rate, 7800.01 Incl, C, 3200/000
    - Line 3: Period XX, Date XX, 5600/000, Ref XX, Finance Charges, 00, 209596.60 Incl, C, 5610/000

    On a monthly basis, process a cashbook payments journal for the instalment, allocating R16794.81 to 5600/000 with Tax Type 00, and for the additional service fee, allocate R57.00 to 3200/000 with Tax Type 01.
    Neville Bailey - Pastel Accounting Consultant and Photographer
    View Neville Bailey Photography

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

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