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hermanehrd
August 3, 2021
Question

Lease to Buy with $1 buyout for vehicles

  • August 3, 2021
  • 1 reply
  • 0 views

We just bought two vans for work and I am having a hard time remembering how to make the entry.  I know they will be fixed asset increases (vehicle) but I am not sure how to enter the monthly payment since interest will be accruing.  Lease is for 6 years then we own for $1 (plus taxes/registeration of course)

1 reply

Noelia Nievas
Noelia Nievas
August 3, 2021

Hi @hermanehrd 

 

it is great that you have reach out to the community for some guidance. Making the correct transactions and knowing where to put the amounts is of upmost importance. 

 

Because this transaction falls into accounting territory, it's best to reach out to your accountant to make sure all the appropriate accounts are adjusted as they are trained on how to do this. If you don't have an accountant no need to worry, we can help. You can go to My Accountant>Find a pro to help to find an accountant in your area.

 

Noelia

T
Tammy_H
August 3, 2021

Hi hermanehrd,

 

Welcome to the QuickBooks Community. You can reach out with your questions for support or use the community as a reference guide that points you to helpful articles. I can guide you down the right path.

 

QuickBooks Desktop has the QuickBooks Loan Manager included making tracking your loans a breeze. You can always Manually track loans if you prefer. I found a question asked by another user that you may find helpful. A couple of our accountant users from the community shared how to record a lease-to-own product to assist them. Feel free to review the explanation to see if it's a good fit for you: How to Record "Lease to Own" Computer asset. 

 

When recording transactions like this, it's a good idea to touch base with your accountant. If you don't have one you use, Noelia shared how to find one familiar with QuickBooks in her post above.

 

I'll be here if you have any other questions. Take care.

 

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