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A
Aaronc5150
March 30, 2022
Question

Business vehicle purchase

  • March 30, 2022
  • 1 reply
  • 14 views

Hello! We have a 50/50 partnership LLC and we recently sold both of our personal trucks to the business.  We sold for X amount of dollars, gave a "down payment" from the business and are owner financing the rest on a purchase contract.  Can you guys give some input on how all of this needs to look in QB online? I need to know the best way to record the down payment, monthly payments and the vehicle's as assets.  This may sound simple, but still fairly new to QB and want to make sure we do it right.  Thanks!!

1 reply

C
Charies_M
Level 9
March 30, 2022

It's an honor to share tips on how to handle your concern, Aaronc5150.

 

You can use the Journal Entry (JE) feature to record down payments and vehicle assets in QuickBooks Online (QBO). Before doing so, make sure to set up the following:

 

Also, it would best to seek an expert's advice from an accountant to ensure you're using the correct accounts so your books will be accurate.

 

Here's how to create a JE:
 

  1. Go to the +New button.
  2. Under Other, select Journal entry.
  3. Set the Asset's purchase date as the Date of the entry.
  4. On the first line select the Asset account then record the item and enter the purchased value as a Debit.
  5. For the second line, use the same amount.
  6. Click Save and close.

For additional information on this, I recommend checking the following article about creating Journal Entry: Create a journal entry in QuickBooks Online.

 

In case you want to review the entries made, you can pull up or print a report for JE's: Report for Journal Entries. 

 

As always, you can find me here if you need more help with the process above. It's my pleasure to assist you. Have a good one.

A
Aaronc5150Author
April 4, 2022

Thanks for the information! I have a couple follow up questions:

 

  • When setting up the liability account, do I just include the total principal amount of the loan, or the entire amount including interest for the 5 year loan term?
  • We setup the loan and made the down payment last week on 3/29.  If I am just setting up the liability account today, it does not let me use a past date for the date to "start tracking".  If I choose today, it asks me the total amount owed as of today.  If I put the amount minus the down payment, will it throw anything off since its not the total loan amount prior to down payment?
  • When recording loan payments, do I need to record the principal and interest paid separately for each payment for tax purposes?  If yes, does interest need its own account?

Thank you very much!
Aaron

L
LcR2
January 28, 2024

Need to set up and record a vehicle purchase.  Deposit was made, need to show hst and interest and then monthly payments

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