3) Income and Expenditure Accounts

Whilst you could use generic accounts for recording the expenses associated with this finance arrangement, it might be desirable to record these separately for reporting purposes.

Lets create an account to track the interest payed on this loan specifically, along with another account to record the initial expense that the loan paid for to start with. In addition, we are going to make sure there is a transfer account available for use in a later step.

This section is very general in nature. Always check with you accountant or bookkeeper before making decisions regarding your account setup.

a) Capital Expense Account (the initial expense requiring a loan)

Be sure to check with your accountant to make sure you do the next section in line with your accounting methods and tax obligations.

Navigate to Setup > Income & Expenditure Accounts
Click New Account
Enter an Expense Description (eg: "Toyota Hilux abc-123" or "Vehicle Acquisition")
Check with your accountant if your expense is subject to GST and if it is to be included in BAS
Set the Account Type to Capital
Click Save New

b) Interest Account

Navigate to Setup > Income & Expenditure Accounts
Click New Account
Enter an Expense Description (eg: "Interest Charged on Toyota Hilux abc-123" or "Vehicle Acquisition Interest")
Check with your accountant if your expense is subject to GST and if it is to be included in BAS
Set the Account Type to Capital
Click Save New

In some situations, it will be possible to use one account in place of the above two.
c) Transfer Account

Depending on your previous usage of HirePOS, you may already have a transfer account available. If so, you have the option to skip this step.

Navigate to Setup > Income & Expenditure Accounts
Click the Account Transfer Tab
If there is no accounts in this tab, or if you want to make a dedicated transfer account, continue on.
Click New Account
Set the Expense Description as "Account Transfer" or similar
Set the Account Type to Account Transfer
Enable Non BAS
Click Save New

Orders/Expenses (Overview)

Orders/Expenses (Overview)