2way Floor Plan

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2way Floor Plan is the descriptor given to floor plan where there are  only 2 records involved  in buying and selling the stock item.

1.Sell the stock item to a customer

2.Payout the floor plan.

 

2way floor plan is typical for new vehicles that are delivered from the factory and the factory invoices the financier direct.  In this scenario, the financier purchases the vehicle in the first instance, so the dealer (you) has no purchase transaction nor Input Credit in relation to the purchase of the vehicle.

You in fact do not actually purchase the vehicle until the Payout is recorded.

As the stock item has no Purchase associated with it and therefore does not exist in the General Ledger, the Floor Plan details should be completed immediately upon saving the stock card for the first time.

Go to the Floor Plan tab, and you will see a message indicating that the Bailment amount has been set to the Purchase Price.  These two values must be the same when 2way Floor plan is selected.

Select the financier, then double-click on the Bailment entry and the purchase date will be populated into the bailment date field.  Press OK.

A General Journal entry will be created for the GST Exclusive portion of the Purchase Price / Bailment amount, debiting the stock on hand asset account and crediting the linked floor plan liability account.  No Purchase or Accounts Payable is created until such time as the Payout is recorded in the stock card.