Outstanding Finance on vehicle purchases – How they post to Sage

In Version 23 of DragonDMS we have improved the way that we post vehicle purchases that have outstanding finance on them.

In this article we will show 4 common scenarios and the corresponding postings that are sent to Sage50.

Margin Vehicle with Outstanding Finance

Margin vehicle purchased for £15,000.00 with outstanding finance of £12,500.00 to be settled by the dealer.

In Sage we post the following transactions

Purchase invoice against the suppliers account for the full purchase price to tax code T0.
Purchase invoice against the finance company for the value of the outstanding finance with no VAT to tax code T0.
Purchase credit against the suppliers account for the value of the outstanding finance with no VAT to tax code T0.
Stock Journals moving the value of the vehicle from the P&L to the balance sheet.

This will leave a balance on the supplier account to be paid to the supplier.

Margin vehicle purchased for £9,500.00 with outstanding finance of £10,250.00 to be settled by the dealer.

In Sage we post the following transactions

Purchase invoice against the suppliers account for the full purchase price to tax code T0.
Purchase invoice against the finance company for the value of the outstanding finance with no VAT to tax code T0.
Purchase credit against the suppliers account for the value of the outstanding finance with no VAT to tax code T0.
Stock Journals moving the value of the vehicle from the P&L to the balance sheet.

This will leave a balance on the supplier account to be paid by the supplier.

VAT Qualifying vehicle purchased for £15,000.00 plus £3,000.00 VAT with outstanding finance of £16,250.00.

In Sage we post the following transactions

Purchase invoice against the suppliers account for the full purchase price to tax code T1.
Purchase invoice against the finance company for the value of the outstanding finance with no VAT to tax code T1.
Purchase credit against the suppliers account for the value of the outstanding finance with no VAT to tax code T1.
Stock Journals moving the value of the vehicle from the P&L to the balance sheet.

This will leave a balance on the supplier account to be paid to the supplier.

In Sage we post the following transactions

Purchase invoice against the suppliers account for the full purchase price to tax code T1.
Purchase invoice against the finance company for the value of the outstanding finance with no VAT to tax code T1.
Purchase credit against the suppliers account for the value of the outstanding finance with no VAT to tax code T1.
Stock Journals moving the value of the vehicle from the P&L to the balance sheet.

This will leave a balance on the supplier account to be paid by the supplier.

Updated on July 28, 2023