Floor Plan is the term given to a dealership specific financing arrangement, whereby a pre-agreed portion of the vehicle purchase price is advanced to the dealership by the financier at point of purchase and secured by the specific stock item. The finance is to be paid out on sale/settlement or earlier depending on the specific arrangements entered into.
Standard floor plan arrangements are deemed to be Taxable Supplies by the Australian Tax Office. This means that GST is applicable on Bailments, Curtailments and Payouts. Other forms of floor plan such as EMA do not incur GST.
Floor plan transactions can only be created and edited via the stock card, and use pre-created Item Codes to control the accounting behaviour of the various transactions.
The linked Floor Plan liability account is used as the Floor Plan control account.
