Van purchase

snappyfish

Hi, I'm a sole trader and have just purchased a van outright no finance with money from my business account, how do I show for this in Wave? It's currently showing uncategorised expense.

OrionsBelts

That's easy enough. First thing, @snappyfish, create yourself an asset account for your van on your chart of accounts. Then, just set that asset account as your category for that expense. And voila!

You'll have more work in front of you once you start working in depreciation, or when you sell the thing in a few years (to fund the purchase of a bigger and better van!), but that's all you have to worry about for now.

snappyfish

@OrionsBelts said:
That's easy enough. First thing, @snappyfish, create yourself an asset account for your van on your chart of accounts. Then, just set that asset account as your category for that expense. And voila!

You'll have more work in front of you once you start working in depreciation, or when you sell the thing in a few years (to fund the purchase of a bigger and better van!), but that's all you have to worry about for now.

Why doesn't wave have this as default? Surely vehicle is a common purchase?

snappyfish

ok, so I created under chart of accounts in "Asset" a "Van Asset Account" and my transaction for van £5995 now shows on Balance sheet under "asset" for debit on £5995

This correct accounting for now?

Alexia

Hi, @snappyfish.

It is a common asset to have, but different vehicles are usually kept as separate accounts, so you can more easily keep track of their value, and handle the resell later down the road.

Yes, that looks good! If you eve have to deal with depreciation, here's how to handle that.