Instalment Sales Creditor

[Prince Thulare]

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

[Neville Bailey]

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.