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.
