Results 1 to 4 of 4

Thread: Vehicle Financed Entry in Pastel

  1. #1
    New Member
    Join Date
    May 2020
    Location
    Gauteng
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Vehicle Financed Entry in Pastel

    Hi,

    Our company purchased a vehicle which was financed through Nedbank over a period of 7 years. I desperately need help on how to record this in Pastel.

  2. #2
    New Member
    Join Date
    Jul 2018
    Location
    Stellenbosch
    Posts
    7
    Thanks
    3
    Thanked 0 Times in 0 Posts
    Hi, this is how our company does it with vehicles/equipment financed through Nedbank.
    Nedbank will send an invoice, with the cost price price, the VAT and the total amount outstanding. In the contract, they will also list a handling fee (we treat it as an expense).
    We do it via a journal entry

    DR Vehicle/Asset account
    DR VAT
    DR Handling fee (on our contracts there are no VAT on this)
    CT Nedbank Liability

    I have also once done it via a normal invoice processing, then I just moved the balance in the supplier control account to a loan account, as it is a long term liability.

    For the monthly payments, we debit the liability with each payment allocated from the bank

    For the interest, we pass the following journal
    DR Interest expense
    CT Nedbank Liability
    You can ask an amortisation schedule from the bank to account for the interest, or just perform one yourself.


    I am not sure if the is the correct way, but our auditors are fine with it

  3. #3
    New Member
    Join Date
    May 2020
    Location
    Gauteng
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Thank you, much appreciated.

  4. #4
    Bronze Member
    Join Date
    Aug 2018
    Location
    Johannesburg
    Posts
    187
    Thanks
    0
    Thanked 33 Times in 29 Posts
    Hi Elize

    I think you are missing a transaction here. There should be an entry for finance charges for the term of the repayment. When you Credit Nedbank Liability the total value outstanding should be shown. You would normally create a deferred finance charges (Asset) account and debit the full value of the interest to that account. At the end of the financial year (or monthly if you wish), you reconcile they finance charges for the year, debit finance charge expense and credit the deferred finance charge asset account.

Similar Threads

  1. [Opinion] Date vs Period options per entry type in Pastel Partner and Pastel Xpress
    By Alec Candiotes in forum Accounting Forum
    Replies: 6
    Last Post: 01-Sep-19, 07:42 AM
  2. regarding supplier journal entry in pastel
    By farhan90 in forum Accounting Forum
    Replies: 1
    Last Post: 15-Nov-17, 05:43 AM
  3. [Question] Adding a financed vehicle on Pastel Partner ?
    By Snap in forum Accounting Forum
    Replies: 2
    Last Post: 24-Feb-17, 10:30 AM
  4. Pastel journal on Motor Vehicle Purchased and Motor vehicle sold
    By CharleneHyman in forum Accounting Forum
    Replies: 1
    Last Post: 19-Nov-15, 08:38 PM
  5. [Question] Capturing financed vehicle in Pastel
    By Lauren R in forum Accounting Forum
    Replies: 3
    Last Post: 08-Feb-12, 02:42 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •