Understanding Common Nominal Transactions in Vehicle Sales

This guide explains the common nominal ledger transactions associated with vehicle sales. Each transaction type is detailed with its corresponding debit and credit nominal codes, descriptions, and additional notes. This ensures accurate financial posting and compliance.

Transaction Breakdown

1. Consigning a Vehicle

• Debit:
  • 1.30.60.81 – Vehicle Consignment Stock
• Credit:
  • 1.30.60.85 – Consignment Stock Suspense
• Notes: Tracks vehicles placed into consignment stock.

2. Receipt Deposit

• Debit:
  • 1.30.60.0 – New Vehicle Bankings
  • 0.0.70.91 – Deposit VAT Suspense
• Credit:
  • 1.30.60.83 – New Vehicle Debtors
  • 0.0.70.3 – Output VAT
• Notes: VAT is declared on deposits, and the VAT accrual is reversed when the vehicle is invoiced.

3. Posting a Purchase Invoice (Directly to the Purchase Ledger)

• Debit:
  • 1.30.60.80 – Vehicle Stock
  • 0.0.60.4 – Input VAT
• Credit:
  • 0.0.70.2 – Purchase Ledger Creditors
• Notes: Reflects costs associated with stock numbers. These costs are allocated to the profit and loss account when the deal is closed.

4. Posting a Purchase Invoice (as a Delivery Note to the GANI)

• Debit:
  • 1.30.60.80 – Vehicle Stock
• Credit:
  • 0.0.70.2 – Purchase Ledger Creditors
• Notes: Similar to direct purchase posting but specifically as a delivery note to the GANI.

5. Invoicing a Vehicle

• Debit:
  • 1.30.60.83 – Vehicle Debtors (Vehicle)
  • 1.30.60.83 – Vehicle Debtors (Settlement)
  • 0.0.70.3 – Output VAT (Vehicle)
  • 0.0.70.97 – Sales Suspense
  • 1.31.60.80 – Used Vehicle Stock (Over Allowance Value)
• Credit:
  • 1.30.60.83 – Vehicle Debtors (Part Exchange)
  • 0.0.70.3 – Output VAT
  • 0.0.70.91 – Deposit VAT Suspense (Reversal)
  • 1.30.10.84 – Sales Finance Commission
  • 1.30.60.80 – Used Vehicle Stock (Value Given to Customer)
  • 0.0.70.87 – Settlement Suspense
• Notes: Posts all elements of a vehicle sale, including VAT, settlement values, and any part-exchange transactions.

6. Receipt Balance of a Vehicle

• Debit:
  • 1.30.60.0 – New Vehicle Bankings
• Credit:
  • 1.30.60.83 – Vehicle Debtors (Vehicle)
• Notes: Reflects final payments received for the vehicle sale.

Summary

This guide provides an overview of key nominal transactions in vehicle sales, ensuring each stage of the process is accurately recorded. Proper use of these nominal codes is critical for maintaining compliance and ensuring accurate financial reporting.

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