How to record financial leasing

Hello,

For the time being, it is somewhat more difficult to enter a financial lease in Dexxter.

If it is a financial lease, you can simply create the investment via expenses > depreciation > "new historical depreciation" (the blue button at the top right). There you can enter the investment, without vAT impact, simply so that the depreciations start running on the purchased light goods vehicle. This way, the costs will already be included in the accounts.

Then, of course, you will want to recover the VAT on those monthly invoices. You can enter this as an expense each time, for example under the cost category "light cargo rental". This is how you will recover the VAT on those purchase invoices.

So far, so good, that's all part of the process. But this means that the cost will be entered twice in the accounts, once via the investment that is being depreciated and once via the monthly invoices.

You can solve this by entering the same monthly invoice again, but as a credit note and unchecking 'include in vAT declaration' (you can indicate this when entering the invoice). This is actually just a credit note to neutralise the same cost from the previously entered invoice. Here, this credit note has no vAT impact, as it simply eliminates the cost. This is because the costs of the car will be included in your accounts via the investment and associated depreciations.

So:

• First step: create the investment;

• Second step: enter monthly invoices to recover the vAT.Third step: enter monthly credit notes (without vAT impact) to eliminate the cost of the first step. This is because the costs will be entered in your accounts via the investment and associated depreciation. There is no vAT impact on this credit note.

Hello Dexxter team, thank you in advance for your answer to my first question! However, I have an additional question. I am currently exempted from VAT as my turnover is > €25,000. Does this have an impact on the bookings to be made for a financial lease of an asset? Thank you in advance for your feedback. Kind regards, </

Hello,

If you are exempted from VAT, my answer was a little premature and you will not need to carry out steps 2 and 3.

You will only need to add an existing depreciation via Expenses > Depreciations > Add existing depreciation. You can then simply include the VAT charged in the total cost.

Kind regards,

Your Dexxter expert