Introduction to the Nominal Ledger and Associa - Flipbook - Page 97
9062 Over allowance clearing account
The difference between a used vehicle9s purchase price and stock value is posted into this account once the
vehicle has gone to A status. Also the over allowance on a prime vehicle (as shown on the finance details page)
is posted here once the vehicle goes to I status. Both entries are usually made with the suffix of the part
exchange stock number and should come to zero. If there is a balance in this account a transaction analysis by
suffix should be done in the nominal ledger to determine the stock number. The vehicle should be checked to see
if it is a direct purchase where the purchase price is not the same as the stock value or, if it is a part exchange,
that the status on the part exchange and prime vehicle is correct.
Part exchange with over allowance:
As can be seen, at point of purchase, the purchase price and VATable amount are identical and also the stock
value and adjusted stock value are identical. The difference between these 2 figures is the over allowance against
the prime vehicle (stock number U500270 in the above example).
If there were no over allowance, all four figures would be identical at point of purchase.
Vehicle Reconciliation
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