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Post Info TOPIC: Freeagent & purchase of vehicle
digiportal


Newbie

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Freeagent & purchase of vehicle
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Hi all,

I'm using FreeAgent. I recently purchased a new company vehicle (a van) £67k inc. VAT). Due to bank payment limits I didnt transfer in the funds (Owners Equity) to pay for it from my personal account, instead I paid for the vehicle directly (personally). All the VAT receipts and invoices etc. are in Company name. Am I correct in thinking the only way to manually recognise these transaction are via Journal Entries?

If so, how do I account for the VAT claim and write down of the asset, Journal Entries too? For banking transactions the software calculates all this automatically. I can add manual bank transactions (if permissible) that would overcome all of the above issues and sort it out automatically, but that would cause reconciling issues I assume later on?

Any assistance would be appreciated.



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Leger


Master Book-keeper

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Hi Phil

Did you transfer the money back to yourself through the bank?



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
digiportal


Newbie

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Afternoon, thanks for your support- I hadnt transferred the money into the company at all, I paid supplier directly. Nothing currently appears on my accounting system or reports.

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Leger


Master Book-keeper

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If you haven't refunded yourself back then the treatment is, create supplier bill coded to fixed assets; additions. £55833.33 plus VAT.   I'm not 100% familiar with freeagent but the journal is credit directors loan account and pay supplier  £67000 (look on the balance sheet it might give you the code there)   That way the bill is paid and £67000 is showing on the Directors loan account owed to you.   You can take that back whenever you want, either as a lump sum or in stages.  When making a payment to yourself just code it to Directors loan account.



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
digiportal


Newbie

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Thank you I'll give it a go- supplier invoice and payment makes sense not considered it from that angle!



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