Pay for Asset by Loan

 

THERE ARE A NUMBER OF DIFFERENT METHODS OF PAYING FOR AN ASSET PURCHASED:
 
  • OUT OF THE COMPANY FUNDS HELD AT BANK
  • BANK LOAN DRAW DOWN
  • FINANCE LEASE
  • HIRE PURCHASE
 
 
 

TO PAY BY A LOAN DRAW DOWN (WHERE SUPPLIER PAID DIRECTLY FROM LOAN A/C)

 
 
SETUP > BANK ACCOUNT NAMES
 
Choose a Term Loan account and rename it appropriately.
 
 
BANK > PAYMENTS
 
To record payment from the Loan Account
 
 
Payments from                  
 
Select the LOAN ACCOUNT from the drop down list from which the payment was made (bottom right hand corner of entry screen). It is important that you ensure you are working from the correct bank account at the start.
 
 
Reference
 
This will be the drawdown reference for payment to the Supplier.
 
 
Date                                                            
 
Date of payment.
 
 
Supplier/Payee
 
Select the Supplier from the Supplier listing (F2) that you are paying.
 
 
Nominal Account              
 
The Nominal account will default to Trade Creditors, this cannot be changed and is the correct account as you are now paying off the Supplier of the Asset, the purchase of which was already accounted for in the purchase invoice entry.
 
 
Amount                                                                  
 
The amount per the cheque or per bank statement paid to the Asset Supplier.
 
 
 
 

TO PAY BY A LOAN DRAW DOWN (WHERE THE LOAN IS TRANSFERRED TO MAIN BANK A/C, AND SUPPLIER THEN PAID FROM MAIN BANK A/C)

 
If the user draws down the loan, transfers the funds to the current account and then pays the supplier from the current account, first record the drawdown and transfer of funds from the loan account to the current account. To do this:
 
  
SETUP > BANK ACCOUNT NAMES
 
Choose a Term Loan account and rename it appropriately.
 
 
BANK > PAYMENTS
 
To record the transfer.
 
 
Payments from                  
 
Select the LOAN ACCOUNT from the drop down list from which the payment was made (bottom right hand corner of entry screen). It is important that you ensure you are working from the correct bank account at the start.
 
 
Reference
 
This will be the transfer reference for the transfer from the LOAN account to the BANK account.
 
 
Date                                                            
 
Date of transfer.
 
 
Supplier/Payee      
 
Leave this blank or set up a “Payee” by typing in the payee name and selecting “Other”
 
 
Nominal Account  
 
Choose the Bank Account to which the funds are transferred.
 
 
Nominal Account

Enter amount being transferred and 'post entry'.
 

TO THEN PAY THE SUPPLIER OF THE ASSET FROM THE MAIN BANK ACCOUNT

 
BANK > PAYMENTS
 
 
Payments from                 
 
Select the bank account from the drop down list from which the payment was made (bottom right hand corner of entry screen). It is important that you ensure you are working from the correct bank account at the start.
 
 
Reference
 
This is the cheque number or the bank statement reference in the case of Direct Debits/Standing Orders
 
 
Date                                                                        
 
Date as written on the actual cheque or in the case of Direct Debits/ Standing Orders the date of transaction per the bank statement
 
 
Supplier/Payee
 
Select the Supplier from the Supplier listing (F2) that you are paying.
 
 
Nominal Account              
 
The Nominal account will default to Trade Creditors, this cannot be changed and is the correct account as you are now paying off the Supplier of the Asset, the purchase of which was already accounted for in the purchase invoice entry.
 
 
Amount                                                                  
 
The amount per the cheque or per bank statement paid to the Asset Supplier.

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