To ensure a smooth transaction when purchasing a vehicle with a settlement that is not being used as a part exchange, it is recommended to follow these steps:
- Create a post-purchase invoice for the correct Sales Invoice Value (SIV), rather than the settlement amount if they differ.
- If the settlement payment amount is different from the invoice value, post it as a payment on account to the same profit and loss (P/L) account used to purchase the vehicle. If the amounts match, they can be allocated against the invoice immediately.
- If the customer is paying a shortfall, post it as a negative amount and on account to the same P/L account.
- Finally, a zero payment can be posted, and all the entries can be allocated together to reconcile the accounts accurately.