Novated Lease Luxury Car Charge

Question

Hi,We have a client who has an employee on a novated lease through Flare. Everything has been setup correctly in MYOB.The employee is required to pay a luxury car charge as the vehicle is over the luxury car limit. This has been setup in the payroll system and allocates to the novated lease luxury car charge expense account, however the amounts allocated are credits, because they are a deduction from the employee's pay.How do I process a debit to this account to clear out the credit balance in the expense account?&nbsp;

princess_r · Answer

Hi Katina1,
&nbsp;
We're glad to have you in the Community Forum!&nbsp;
&nbsp;&nbsp;
Thanks for giving such a clear rundown of the situation. Handling novated leases is complex, and it’s always a good idea to check in with your accounting advisor.&nbsp;
&nbsp;&nbsp;
When you set up a novated lease for an employee through Flare, it's pretty hands-off. The payroll system will automatically show the lease as a credit in your expense account, and you'll have to record a corresponding debit entry against that same account. This is usually completed using an allocation or a spend money transaction. You can check out this link for all the details on how novated lease works in MYOB, it got you covered.&nbsp;
&nbsp;
Cheers,
Princess

Forum Discussion

Novated Lease Luxury Car Charge

1 Reply

Looking for something else?

Related content

Novated Lease Payment - Set Up Account/Line Item

Novated Car Lease - without Flare

Pre-Tax Novated Lease/SG Superannuation

Novated lease and superannuation

Novated Lease Category Fault on Browser

Credit Card Charges

What STP category is used for Novated Leases

charging for travel