Purchasing Lease Assets

Purchasing Lease Assets

Purpose

Enter details of when the Asset was purchased so the initial cost can be calculated and the Dealer/Payable account paid for the Asset Leased

Access

  1.  from the Lease Asset Details dialog

Process

The following screen will display


Buying the Asset from a Dealer or Creditor

This will be the usual method of purchase where the Lease is an Operating Lease.

It is critical that the Dealer Profile associated with the lease using this purchase method has a dealer profile set up with 0.00% payout to the dealer account.

Once the asset financial and usage details have been set up, the asset can then be purchased from the third party supplying it.

An asset can be purchased from either a Creditor or a Dealer

Field
Explanation
Purchase Date
This will default to the Start Date of the asset from the calling dialog

This can be overtyped if required
Payable Account
[F2] to highlight and  a creditor the asset is to be purchased from
Dealer Account
The Dealer Account associated with the lease account will display here

If this is to be changed [F6] to clear this field and then [F2] to highlight and   the dealer the asset is to be purchased from

Either a Payable Account or Dealer must be selected for the asset purchase process to proceed
Dealer Transaction Type
[F2] to highlight and  the transaction type that will be used to purchase the asset from the dealer

A transaction type is not required if purchasing from a creditor
Reference
This will default to the Code of the lease account

It can be changed

It will update either the dealer account or payable account when the purchase transaction is posted

It provides an easy reference back to the lease account from either of those systems when reviewing the transactions from those systems
Cost Price (including tax)
This will default to the value in the first cost item filed in the finance details

In this case that is called Asset Cost Price
Tax Code
[F2] to highlight and  the tax code applicable to the asset purchase

The completed dialog will look similar to:



You will be returned to the Lease Asset Browse. The Lease Asset Dialog will now look like:


On  the following takes place:
  1. The Initial Cost has now been filled with the GST exclusive value of the asset. This should be the same value as the Cost Item 1 - Cost Item 2. In this case that is the Asset Cost Price less GST.
    If the GST calculated by this process does not agree to the Cost Item 2 value, a message will display:

    It is necessary to change the Cost Item 2 amount to the correct amount so the purchase can proceed
  2. The Cost Price (Including tax) is posted to the associated Dealer Account awaiting payment of that liability.
    Dealer Account

Purchase using the Dealer Profile

This will be the main method of purchase if the lease if a Finance Lease

However, this method can be used for Operating Leases where there is no requirement to use the Sell Asset process and record the profit or loss on the sale of the asset

Using a Dealer Profile, the system will automatically post the components of the lease that are payable to the dealer when the lease account is d after initial set up

If any change are made to the Asset finance details, then these changes will also automatically post to the dealer account when the lease asset is d

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