Sage - How do I deal with a vehicle purchase?
Discussion
Not done this before, and I am certainly no accountant.
I have just purchased a vehicle for my business for cash. I have a receipt and all that, but I'm not sure how to deal with it in Sage.
Do I put it in as, say, a miscellaneous purchase and then journal it across to Motor Vehicles (0050) as a fixed asset, (thus it shows up in the P&L account) or do I just enter it straight into the Motor Vehicle nominal account whereby it doesn't show in the P&L but does show on the balance sheet as an asset?
I'm a sole trader not a Ltd if that makes any difference.
>>> Edited by arcturus on Friday 16th April 12:48
I have just purchased a vehicle for my business for cash. I have a receipt and all that, but I'm not sure how to deal with it in Sage.
Do I put it in as, say, a miscellaneous purchase and then journal it across to Motor Vehicles (0050) as a fixed asset, (thus it shows up in the P&L account) or do I just enter it straight into the Motor Vehicle nominal account whereby it doesn't show in the P&L but does show on the balance sheet as an asset?
I'm a sole trader not a Ltd if that makes any difference.
>>> Edited by arcturus on Friday 16th April 12:48
). Effectively you are only exchanging one type of asset (cash) for another (vehicle). 
That is what I had done, but I was just having a moment of doubt; happens a lot when I am doing my accounts!! 
Yes I am VAT registered.
The vehicle was purchased from a private individual who did not charge me VAT.
If it makes any difference, the vehicle is an old Land Rover Discovery (not the commercial version) that I now use to get down some very rough tracks to some of my more agricultural customers.
The vehicle was purchased from a private individual who did not charge me VAT.
If it makes any difference, the vehicle is an old Land Rover Discovery (not the commercial version) that I now use to get down some very rough tracks to some of my more agricultural customers.
VAT is not an issue, therefore. As already suggested by others, post the cash payment directly to the Motor Vehicles heading in Fixed Assets.
I assume that you do not make provisions for Depreciation in your regular accounting postings - most people leave that to their accountants when preparing the year end figures.
Please note that, if you wish, you should be able to claim Capital Allowances on the new vehicle. You state that it is not the "Commercial" version of the Land Rover. That means that you are probably limited to claiming 25% Capital Allowances per annum. Commercial Vehicles can obtain 40% Capital Allowances in their first year of ownership and 25% for each following year.
>> Edited by Eric Mc on Saturday 17th April 12:14
I assume that you do not make provisions for Depreciation in your regular accounting postings - most people leave that to their accountants when preparing the year end figures.
Please note that, if you wish, you should be able to claim Capital Allowances on the new vehicle. You state that it is not the "Commercial" version of the Land Rover. That means that you are probably limited to claiming 25% Capital Allowances per annum. Commercial Vehicles can obtain 40% Capital Allowances in their first year of ownership and 25% for each following year.
>> Edited by Eric Mc on Saturday 17th April 12:14
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