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HP Agreement in Quickbooks and Vat Cash Accounting

  • Associate PM.Dip
  • Practice Licence
  • 21 posts
  • # 115647

Hi

 

My client has bought a computer on a hire purchase agreement. How do you enter this in Quickbooks pro and is it possible to claim the vat back on cash accounting basis.  I know I need to debit assets and credit HP liability account but not sure what to do with vat as I read somewhere on the internet that HP agreements are excluded from cash accounting.

  • Associate
  • Practice Licence
  • 83 posts
  • # 115721

I can't help on quickbooks I am afraid - but you can claim all the relevant VAT regardless of the fact that you are cash accounting. You have "paid" for the computer (or rather the finance co have) - your repayments to the loan will be outside scope. Hope that helps.

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