In a situation where it is likely that the amount expected may become recoverable, you can write the receivable against “ Bad debt” and if provisions are being made too, you can pass the necessary “ Journal Entries“. The “ Receive Payment” lets you post the initial payment and expected recurring payments. You can also use the “ Invoice section” to record the car model, the amount receivable (including VAT charges), terms of payment so you can ascertain the ageing status of the clients. QuickBooks lets you record car financing arrangements with clients who are looking to buy new or used cars with an upfront payment and flexible repayment plan, which could span for 6 months, 1 year or more. To record such transaction, we advised that they use “ Customer Payment” window to receive upfront payments and select “ Record Deposit” to pay into the account such fund is domiciled. This will help you create a “ Customer Receivable Account” that checks your expected cash inflow.įrom our conversation, we also understood that they always request for an upfront payment on car orders before, proceeding to big for cars and upon delivery to the customer, the final payment is received. You can also use “ Create Invoice” to record the car details, amount charged, and VAT deductions receivable from customers. Invoicing the customer in Naira to record receivables and receiving payment into a Naira bank account. Such tax payable in Naira would also be tracked via the “ write a check” window, mapped to “Custom Account” under suppliers name with the relevant bank payment account selected. Creating another service provider account to track custom duties on the car imported.īy law, every importer is required to pay a customs duty on cars imported which is determined by the estimated value of the car. The “ bill” is used for auctions that are yet to be paid for but is already won while the “ write a check” window tracks upfront payment on auctions. Fill in the sellers’ details > Enter an outstanding balance payable to the seller > Select the currency you would be paying when settling the car auction price.Īfter creating a supplier’s account, you can now proceed to add a “ bill” or “ write a check” to track all USD payables or payment respectively to the total foreign transaction cost of the car, including shipping and freight charges. ![]() If you had read through the guide above, the rest shouldn’t be a challenge go to the “ Supplier or Vendor Centre” and create a foreign supplier which, in this example, is the car auction seller or company based in the USA. We have already shared a complete guide to adding your domiciliary bank accounts in QuickBooks and updating your foreign exchange rates in one of our previous posts, click here to learn more Creating a foreign seller account and bills to track all payables in USD, including shipping fee.
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