Tut,
Please enlighten me on how to treat our invoices.
We are into leasing and hiring of Motor Vehicles and trucks.
All the Motor Vehicles and Trucks are part of our Fixed Assets and hence depreciate monthly.
Challenges:
We have about 90 Motor vehicles and 10 Trucks
We have 7 customers
We lease vehicles to 6 of these Customers and hire trucks and Motor vehicles to 1 Customer
How to select these vehicles and bill is an issue
Most of these vehicles are of the same brand, some bought at the same time and some at different times
How do I create them in Fixed Assets
How do I treat the 100 Vehicles Depreciation
How do I capture each vehicle service in date, recoverable, type depreciation
Sales invoices have nothing to do with fixed assets. But, if you want, you can create income accounts to record income associated with various types of vehicles or even individual vehicles.
As for your “challenges:”
There is no limit on how many fixed assets you can enter. So this is not a challenge.
There is no limit on the number of customers you can enter. Also not a challenge.
From an accounting perspective, there is no difference between a longer term lease and shorter term hire. You simply invoice according to your agreement with the customer.
You do not need to select a vehicle. You need to select an income account. See above.
That makes no difference. Businesses usually assign an asset number to tell things apart. You can put this into the Item code field or include it as part of Item name.
Use custom fields. There is an example in this Guide: https://www.manager.io/guides/7277. The example is for a different purpose, but it shows how to include exactly the information you asked about.
The above table shows that all Vehicles (Fixed Assets) will be entered one by one in the Manager.
Depreciation will be accounted for, once Depreciation is done.
TREATMENT OF INVOICES / INSURANCE PAID ON VEHICLES / REPAIRS
There is confusion here, do we enter all the Vehicles and Trucks as inventory items or non inventory items .
For invoice, as you pick the Vehicle / Truck, one will allocate the income account instead of programming the income account under Item can be sold and so on.
For insurance paid on vehicles see what I did below, this I think is not correct.
Fueling of Vehicles: To issue Fuel, I pick from stock of fuel on the inventory and allocate to the expense Head, while the Description will state which vehicle the fuel was issued.
Neither. They are fixed assets. Their book value is carried as the net between Fixed assets and Fixed assets - accumulated depreciation. Inventory and non-inventory items are things you buy and sell or use for production, not assets you hold for extended times.
If you want, you can create non-inventory items for the lease or rental of various vehicles. But this will just be a shortcut for entering line items on the sales invoice. You will not be selling the vehicles.
Why do you think this is not correct? I can only guess what you are showing with this screen shot. Is it a drill down on an expense account balance? If so, what is wrong with it?
Why are you sure it is not correct? Did you purchase repairs for the BMW from R. T. Briscoe? Did Briscoe give you a sales invoice for the repairs? If yes, your purchase invoice should match Briscoe’s sales invoice. The only thing wrong I see is the absence of any tax. I suspect Briscoe would have charged some form of tax.
Fuel would not normally be considered inventory, unless you also sell it to customers. It would be a consumable supply, posted to an expense account when you purchase it. Therefore, you would not use an inventory write-off. But, if you also sell it to customers, then a write-off could be appropriate.
“I think it is not correct … I am sure is not correct … I hope is not correct.” These statements suggest a general lack of accounting knowledge. You will never be able to use Manager effectively until you understand what it is supposed to do. May I suggest spending some time learning basic accounting principles? You might start here: https://www.accountingcoach.com.
Tut,
I understand all your explanations.
I am an Accountant and understand uses Debit and Credit very well.
The challenge here is in the use of Manager software to track income, repairs and maintenance, fueling and insurance of multiple vehicles.
I just use R. T. Briscoe as an example, though not the Company that will do all transactions.
Tut, you said that fuel bought in bulk and stock for Vehicles usage on lease, at the point fuel is issued, write off should not be used to reduce the stocked fuel, please explain.
Sorry for the inconvenience, I love Manager Software and what your team are doing.
I need to deploy it for our activities correctly.
Can I get someone who will be willing to put me through on how maintenance, fueling, insurance will work on Manager where more than 80 vehicles are involved.
I said it was not appropriate to consider fuel as an inventory item unless you were holding it for sale. Otherwise, it is a consumable supply. And, I said that if it is not a proper inventory item, you should not be using inventory write-offs to record its consumption. Then, I said that if were holding fuel for sale to customers, it would be appropriate to use write-offs (when you consume it for business purposes).
What do you need to know? You will buy maintenance services, fuel, and insurance using purchase invoices if on credit or directly as payments if paying immediately. Post the purchases to appropriate expense accounts. See https://www.manager.io/guides/7325 and https://www.manager.io/guides/7189. If you desire, associate all these transactions with specific vehicles using tracking codes.
If you are an accountant, there should be nothing mysterious about any of this. So, if you are having trouble, you need to ask specific questions. So far, all you have done is post screen shots without explanations and say that you think everything is wrong without saying why.
Tut,
Thank you so far for all your answers.
Though, we seem not to understand ourselves.
I have gone through all the suggested guides, very familiar with and uses them.
However, I will go back and use Desk Edition and send specific questions.
The issue is that insurance is paid for more that 50 vehicles / trucks at ago, at the point of entering the Data, we want the Vehicles to be popping up as is being typed rather than re-typing each vehicle, when you want to post a transaction example maintenance expense, insurance, income etc.
Then enter 50 line items on the transaction form. Post all of them to your Insurance expense account, but choose a different tracking code for each one, with the tracking codes corresponding to the different vehicles.
@cmnak, surely you realize that if you want to separate records by vehicle you must input information by vehicle. Tracking codes are the easiest way to do it. You will set them up once and never need to type vehicle identification information again. The other option is to create individual income and expense accounts in each category for every vehicle. That would result in a very cumbersome chart of accounts. And you would be stuck with accounts for vehicles after you dispose of them.
Then I suggest you use “master” Journal Entries.
When you make the payment, allocate it to a clearing account.
Create a “master” Journal Entry listing all vehicles with the expense account and tracking codes.
You can have a “master” for different expense accounts, even fuel usage.
Just “clone” the master for the next payment’s re-allocation, editing any vehicle changes.
However, using “master” Journal Entry listing all vehicles with the expense account and tracking codes will get the required cost Repairs and maintenance, fueling, insurance, Registration etc hit the right expense account as shown below.
The issue with Journal voucher, is that you cannot enter Purchase invoice through JV.
But rather Purchase invoice was created and then hit it under provision account (under liability) then pass the journal voucher and hit the credit side on the provision.
Which method is better with Manager software for a neater report.
Depreciation through Fixed Assets: Accumulated Depreciation is not hitting the right account code on the chart. That means, Journal voucher has to be used too. See example below:
The best wat to add this is to bring the starting balances (from trail balance) in by way of a purchase invoice. pay the invoice out of cash account, and bring the cash of the invoice in to balance out. Same goes with the Fixed assets purchased in a prior period.
@reed, I have no idea what you are referring to. Nothing in this topic since it was resurrected after 3 years has anything to do with starting balances or assets purchased in prior periods.
I do not believe the neatness of reports enters into the question. Purchase of fixed assets should be by purchase invoice or payment except when purchased with a loan. See https://www.manager.io/guides/9106.
Depreciation posting is hard-coded in the program to default accounts. You cannot change that.
This is controlled by checking the Expenses box for the group when building the chart of accounts. See https://www.manager.io/guides/9181. When checked, the group shows as Less: Group Name and numbers are positive. Unchecked, the figures are negative.
Brucanna,
My challenge is posting all the payment vouchers to their respective accounts in the chart and linking the cost to the vehicles to enable me run report to meet part of the Management request.
