How do I set up a Chattel Mortgage?

The first thing you will need to do is set up some accounts in the Chart of Accounts (if they are not already there).

Click on the Chart toolbar option

and click on the Add button.

If you are on Level 1 or 2  of Cashbook, go straight to Step 3.

Step 1:

See the following link: Setting up Liability Account

Step 2:

See the following link: Setting up an Asset Account

Step 3:

Go into Cashbook and click on Add at the bottom of the screen.

The first dissection code is the Asset Expenses account set up above, with the Gross Amount being the total amount paid for the asset. When you enter off this dissection you will (if on Level 4) be taken to the Fixed Assets Register window to enter the purchased asset. See below for details on this.

The second dissection is the Loan Income account also set up above. The Gross Amount is the total of the loan. If the loan is for more than the asset cost the transaction type is a Receipt, if it is less or equal to the purchase cost of the asset it is a Payment. Click OK when the relevant information is entered.

Note: If there is an out of pocket expense this should be entered in the Gross Amount Including GST box.

NOTE: Adding an item to the Fixed Asset Register is only applicable to those on Level 4.

When adding the transaction there is an F icon in the Notes section, click on this to add the item being purchased to the Register.

In the Fixed Assets Register window that opens click on Add.

In the Edit/View Asset window that opens you will need to enter a Group to which the Asset belongs, you can add a new Group by clicking on the Plus (+) button. The Description is what the asset is, for example a specific type of car or machinery. If you wish to enter a Current Value it is the cost of the item EXCLUDING GST. The other sections are optional, the sections coloured Red must have information entered in them.

For the purchase information the Date is the date you bought the asset. The cost is what the asset is worth excluding GST, this section and the date will automatically be filled in if adding from the transaction, as will the Value and Date for Depreciation. When entering a New Asset the Value for Depreciation will be the purchase price for the first year, while an existing assets value will be whatever it depreciated to the previous year.

Click OK once you have entered the required information.

Step 4:

See the following link: Loan Repayments.