Capital Purchases and Finance in AccountRight
HOW TO RECORD CAPITAL PURCHASES AND FINANCE IN ACCOUNTRIGHT There are many finance options available to purchase capital equipment. Commonly used in Australia are: chattel mortgages: ownersh...
Forum Discussion
Carly,
In the Liability to the Finance Company, I put the monthly amount.
It is then easy to see that the repayment is made to the correct account.
I would set up a recurring Spend Money or a Bank Rule for the monthly repayment to the Finance Company.
You can obtain from the Finance Company, a Interest Amortisation Schedule.
This will show the interest charged each month.
I prefer to enter a monthly journal entry for the interest (setup a recurring journal entry).
I also prefer to do monthly journals for depreciation using the simplified method available to SBE ie 15% and 30%.
Many Tax Accountants prefer to do annual entries for Interest and Depreciation - once again this is not my preference.
Let us know how you go.
Duncan
