Adding and Asset and journal entry

Question

Hi
&nbsp;
We have purchased a vehicle on hire purchase. I have tried to follow instruction through MYOB however the journal is not adding up.
Can anyone explain the process to include adding a journal for a purchase so I can capture the GST and it all adds up at the end.
&nbsp;
Do I add the finance company and repayments to the journal or add this separately so it automatically takes each monthly repayment off the loan. I have set up a recurring transactions but not sure how to link it to the original amount of the loan.&nbsp;
&nbsp;
Any assistance would be much appreciated.
&nbsp;
Regards Marg

genreve_s · Answer

Hi margkout,&nbsp;
&nbsp;
Double‑checking how you’re recording the vehicle is certainly important to get asset purchases right in the books.
Your best bet is to also run this past your accountant or financial adviser, but in general, you’ll:

Record the vehicle purchase with a single general journal, so the asset and GST are captured correctly
 Set up a loan / hire purchase liability that you then pay down with your monthly repayments

These help articles step through the process with examples:
https://www.myob.com/au/support/myob-business/purchases/set-up-a-hire-purchase-arrangement?productview=Browser
https://www.myob.com/au/support/myob-business/banking/loans-and-repayments?productview=Browser
Hope that helps point you in the right direction.
&nbsp;
Regards,Genreve&nbsp;

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Adding and Asset and journal entry

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