Help with HP refund on vehicle

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in AAT member discussion
Afternoon all,

Either I'm having a very dumb day or we've received a refund by mistake.

Company changed a van in Nov. Part exchanged on van which still had o/s HP payments on it.
Invoice from supplier set out as following:-

Total vehicle price incl VAT & RFL £16864.47
HP settlement £719.22 added (this works out at 3 payments)
Gross part ex allowance £8841.25 deducted - they asked me to send them a sales invoice to set their records right.
Net due £8712.44 - financed by new HP.

I've DR net amount to vehicles, Dr RFL to m/exps VAT to VAT (!) And for part-ex Cr net to Vehicles (don't have disposals acc). Looks as if I've ignored £719.22 when I posted invoiced :oops:

One more payment for old van went through a few days after invoice date which I have posted to supplier acc - this was how it was set up before and would have reduced acc balance to nil if we had continued.
This payment was then refunded at the beginning of last month. :?
New payment has come out for new HP agreement - no problem there. But they have now refunded £719.22 originally charged on invoice.
I've left with 2 bank receipts that I have no idea where to post and supplier acc still showing amounts outstanding on original loan :?

I'm using Sage so any ideas? I've been going round in circles with it for ages. Even tried going off and doing something else in the hope it would suddenly come to me.

Jan

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Help with HP refund on vehicle

    Firstly, I don't think the disposal of the old van is quite right. The part exchange value should have gone to code 4200 - sale of assets. Then you need a journal DR sale of assets CR vehicles cost.

    Now you should have the new cost in your vehicles account, and the profit / loss on disposal in code 4200.

    When you posted the addition, you also need a DR of £719.22 to the o/s HP - in your case, suspense, and then a purchase credit note posted to the supplier a/c, also to suspense. That wasn't terribly good grammar there!

    DR - cost
    DR - motor expenses
    DR - input VAT
    DR - HP o/s
    CR - p/ex rec'd
    CR - New HP liability

    The last payment and the subsequent refund of it can go anywhere, as long as they go to the same place, as they'll cancel each other out.

    The refund of the £719.22 I think should be DR bank CR New HP liability, as they're almost certainly going to get it back!

    Hopefully that all makes sense and (this is the bigger if) is actually right!
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Help with HP refund on vehicle

    Thanks Lilibet,

    I did actually think I should have posted to sale of assets. I'll have a look at this again when I get home - its absolute chaos here today. I used to work in the office on my own (bliss) which meant I could think things out - now I'm forever getting interupted.

    Then again I might go home and lie down in a darkened room - with a large glass of wine! Second thoghts - that may take some drinking, but you know what I mean :lol:

    Jan
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Help with HP refund on vehicle

    Lilibet

    Just to finalise the saga - got everything to balance but not exactly your way.

    Turned out they shouldn't have reduced the invoice by o/s HP - this effectively reduced the part-ex amount received. So I've corrected the original sales invoice raised for the part-ex by the £719.22 and posted the bank receipt to sale of assets.

    My predessor hadn't set up a HP account - just marked payments off creditors a/c so I've set up new HP acc which is better. Then if it happens again on change over it will be easier to post!

    Jan

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