Purchase of Fixed Assets with Hire Purchase

Purchase of Fixed Assets with Hire Purchase

Purchase of Fixed Assets with Hire Purchase:

Purchase of Machine value S$80,000.00 with down payment of S$25,600.00

Hire Purchase principal S$60,000.00

Monthly instalment S$1,150.00 x 60 months 

Total Interest charge (base on 3% interest) S$1,800.00 x 5 years = S$9,000.00


Create an Item Group for Fixed Assets entry 


Setup > Item Group > New


Tick changeable Account so we can select GL code   



Create an Item code for Fixed Assets 

Setup > Item > New 


Enter the information and save it



Enter Purchase Fixed assets invoice

Purchases > Supplier Invoice > New 

Feature

Function

Click on < Purchases > 

  • Purchases activity is for all Accounts Payable module

Click on < Supplier Invoice >

  • To view supplier invoices history listing
  • To enter Supplier Invoice

Click on < NEW >

  • For create a new entry



Enter the information and save it

Feature

Function

Click on < Add >

  • To save the document





To view double entries

Click on GL button

Feature

Function

Click on < GL >

  • To view double entries for that documents








Downpayment

Purchases > Payment > New

Feature

Function

Click on < Payment >

  • To view payment history listing
  • To Enter payment 




Import Supplier Invoice to make payment

Feature

Function

Click on < Import >

  • To import outstanding invoices for this payment





Docu Outstanding > Add Selected Row > Back

Feature

Function

  • Click on < Docu Outstanding >
  • It will show the outstanding on your right hand site for us to choose.
  • Click on < Add Selected Row >
  • Will add the highlighted outstanding to this payment voucher.
  • Click on < Back >
  • After completed selection of outstanding document back to payment voucher screen



Change the amount for payment and Add



Do the Journal entry for Hire Purchase transaction 

Adjustment > Journal Entry > New 

Feature

Function

Click on < Adjustment >

  • To do adjustment by Journal Entry




Enter double entry and save it


Feature

Function

Selection on < Account >

  • To choose the account for transaction 


Selection on < Business Partner >

  • For choosing on Trade Creditor / Debtor Account need to enter the name for Creditor or Debtor 




Monthly repayment for Hire Purchase

Purchases > Payment > New 


Enter the information and save it



Feature

Remark

Selection on < Mode >

  • To select the withdrawer bank 


Selection on < Cheque Payee  >

  • Payee for the cheque  


Selection on < Cheque Layout > 

  • To choose the cheque layout that you want to print for this cheque


Tick on < A/C Payee Only >

  • This will appear in the cheque


Tick on < Bearer >

  • This is for cross the bearer in the cheque


Click on < Print Envelope >

  • Print out Envelope 




Journal Entry for monthly Fixed Assets depreciation:


Machine value S$80,000.00 with 10% depreciation.

monthly depreciation S$8,000.00/12mths = S$666.66 



Create a Journal Entry for Fixed Assets depreciation:


Adjustment > Journal Entry > New


Enter the double entry and save it


Balance Sheet to shown Fixed Assets transaction with Accumulated Depreciation





    • Related Articles

    • Disposal of Fixed Assets

      Disposal of Fixed Assets: Vehicle value S$50,000.00 current net book value S$20,000.00. Disposal amount S$32,000.00. Create a journal entry to taken off our Vehicle account and accumulated depreciation account Adjustment > Journal Entry > New Enter ...

    • 1.0. User Interface

      User Interface Being familiar with a software's user interface (UI) is crucial for several reasons. It allows users to gain more control over the application, reducing the need for second-guessing and minimizing errors, which can be time-consuming to ...

    • 4.0. Purchase Order

      Purchase Order A Purchase order is the document that is issued to the supplier. The Purchase Order module does not create accounting entries for all item types, but it does allow imports from QO/PI/IV modules. STEPS: Click on PURCHASES > PURCHASE ...

    • 4.0. Chart Of Accounts Setup

      Creating an Expense Account STEPS: Click SETUP activity Click ACCOUNTS Click CHART OF ACCOUNT module Click NEW CODE enter EXP3301 Enter EXP as it is an expense account, and a unique number CATEGORY select EXPENSE Select the appropriate category ...

    • 5.0 Outstanding Reports

      Quotation Outstanding STEPS: Click on REPORT > OUTSTANDING > QUO. OUTSTANDING Select appropriate FILTERS Click on REFRESH Double click on entry to view Original Document Click on REPORT Click PRINT to print to PDF Delivery Order Outstanding STEPS: ...