There are several different methods of paying for an asset purchased:

• Out Of The Company Funds Held At Bank
• Bank Loan Draw Down
• Finance Lease
• Hire Purchase 

To Pay By A Loan Draw Down (Where Supplier Paid Directly From Loan A/C)

Setup> Bank Account Names

Choose a Term Loan account and rename it appropriately.

Bank> Payments

To record payment from the Loan Account

Payments From                  

Select the LOAN ACCOUNT from the drop-down list from which the payment was made (bottom right-hand corner of the entry screen). You must ensure you are working from the correct bank account at the start.

Reference

This will be the drawdown reference for payment to the Supplier.

Date                                                            

Date of payment.

Supplier/Payee

Select the Supplier from the Supplier listing (F2) that you are paying.

Nominal Account              

The Nominal account will default to Trade Creditors, this cannot be changed and is the correct account as you are now paying off the Supplier of the Asset, the purchase of which was already accounted for in the purchase invoice entry.

Amount

The amount per the cheque or bank statement paid to the Asset Supplier. To Pay By A Loan Draw Down (Where The Loan Is Transferred To Main Bank A/C, And Supplier Then Paid From Main Bank A/C). If the user draws down the loan, transfers the funds to the current account and then pays the supplier from the current account, first record the drawdown and transfer of funds from the loan account to the current account. To do this:

Setup> Bank Account Names

Choose a Term Loan account and rename it appropriately.

Bank>Payments

To record the transfer.

Payments From                  

Select the LOAN ACCOUNT from the drop-down list from which the payment was made (bottom right-hand corner of the entry screen). You must ensure you are working from the correct bank account at the start.

Reference

This will be the transfer reference for the transfer from the LOAN account to the BANK account.

Date                                                            

Date of transfer.

Supplier/Payee      

Leave this blank or set up a Payee by typing in the payee name and selecting Other

Nominal Account  

Choose the Bank Account to which the funds are transferred.

Nominal Account

Enter the amount being transferred and Post Entry.

To Then Pay the Supplier of the Asset from the Main Bank Account

Bank>Payments

Payments From                 

Select the bank account from the drop-down list from which the payment was made (bottom right hand corner of the entry screen). You must ensure you are working from the correct bank account at the start.

Reference

This is the cheque number or the bank statement reference in the case of Direct Debits/Standing Orders.

Date                                                                        

Date as written on the actual cheque or in the case of Direct Debits/ Standing Orders the date of transaction per the bank statement.

Supplier/Payee

Select the Supplier from the Supplier listing (F2) that you are paying.

Nominal Account              

The Nominal account will default to Trade Creditors, this cannot be changed and is the correct account as you are now paying off the Supplier of the Asset, the purchase of which was already accounted for in the purchase invoice entry.

Amount                                                                  

The amount per the cheque or bank statement paid to the Asset Supplier.