I'm using FreeAgent. I recently purchased a new company vehicle (a van) £67k inc. VAT). Due to bank payment limits I didnt transfer in the funds (Owners Equity) to pay for it from my personal account, instead I paid for the vehicle directly (personally). All the VAT receipts and invoices etc. are in Company name. Am I correct in thinking the only way to manually recognise these transaction are via Journal Entries?
If so, how do I account for the VAT claim and write down of the asset, Journal Entries too? For banking transactions the software calculates all this automatically. I can add manual bank transactions (if permissible) that would overcome all of the above issues and sort it out automatically, but that would cause reconciling issues I assume later on?
Any assistance would be appreciated.
Leger said
Thu Dec 22 13:51 2022
Hi Phil
Did you transfer the money back to yourself through the bank?
digiportal said
Thu Dec 22 13:56 2022
Afternoon, thanks for your support- I hadnt transferred the money into the company at all, I paid supplier directly. Nothing currently appears on my accounting system or reports.
Leger said
Fri Dec 23 11:44 2022
If you haven't refunded yourself back then the treatment is, create supplier bill coded to fixed assets; additions. £55833.33 plus VAT. I'm not 100% familiar with freeagent but the journal is credit directors loan account and pay supplier £67000 (look on the balance sheet it might give you the code there) That way the bill is paid and £67000 is showing on the Directors loan account owed to you. You can take that back whenever you want, either as a lump sum or in stages. When making a payment to yourself just code it to Directors loan account.
digiportal said
Thu Dec 29 17:34 2022
Thank you I'll give it a go- supplier invoice and payment makes sense not considered it from that angle!
Hi all,
I'm using FreeAgent. I recently purchased a new company vehicle (a van) £67k inc. VAT). Due to bank payment limits I didnt transfer in the funds (Owners Equity) to pay for it from my personal account, instead I paid for the vehicle directly (personally). All the VAT receipts and invoices etc. are in Company name. Am I correct in thinking the only way to manually recognise these transaction are via Journal Entries?
If so, how do I account for the VAT claim and write down of the asset, Journal Entries too? For banking transactions the software calculates all this automatically. I can add manual bank transactions (if permissible) that would overcome all of the above issues and sort it out automatically, but that would cause reconciling issues I assume later on?
Any assistance would be appreciated.
Hi Phil
Did you transfer the money back to yourself through the bank?
If you haven't refunded yourself back then the treatment is, create supplier bill coded to fixed assets; additions. £55833.33 plus VAT. I'm not 100% familiar with freeagent but the journal is credit directors loan account and pay supplier £67000 (look on the balance sheet it might give you the code there) That way the bill is paid and £67000 is showing on the Directors loan account owed to you. You can take that back whenever you want, either as a lump sum or in stages. When making a payment to yourself just code it to Directors loan account.
Thank you I'll give it a go- supplier invoice and payment makes sense not considered it from that angle!