Trade Allowance

This field is only relevant if this stock item was acquired by way of a trade-in.  It refers to the amount the dealer allowed for the customer's trade on the retail order form, including any over-allowance.

Where the Trade Allowance is different to the amount shown as Purchase, the difference will be displayed in the Over Allowance field and is used in calculating the profit of the stock item this one was traded on.

Trade Allowance = Purchase Price (of the trade) + Over-Allowance.

E.g.: Vehicle A is sold for $16,000. The customer pays for vehicle A with $14,000 and a trade-in vehicle B.

•Scenario 1 - Vehicle B is worth 2,000.

Trade Allowance is $2,000 Purchase Price (vehicle B) is $2,000 and Over-Allowance is $0.00.

•Scenario 2 - Vehicle B is worth 1,000.

Trade Allowance is $2,000 Purchase Price (vehicle B) is $1,000 and Over-Allowance is $1,000.

•Scenario 3 - Vehicle B is worth 3,000.

Trade Allowance is $2,000 Purchase Price (vehicle B) is $3,000 and Over-Allowance is -$1,000.

•Special GST Note:  This figure is used to determine the GST Notional Input Tax Credit where the stock item was acquired from a non-GST registered entity.