QB Issue Resolution:
Legally since he can not register the vehicle until you pay off the lien on it, you are not selling it, you are accumulating the agreed upon purchase price against the day he can buy it, lien free.
His payments would be deposited and posted to deferred income liability account you create
When his payments = the agreed upon selling price, you …
1. pay off the loan and obtain a lien released title
2. Transfer the title to his ownership
3. calculate and post partial year depreciation
4. create an income account called gain/loss on asset sale
5. move deferred revenue to the gain loss account, debit deferred revenue, credit gain loss
6. move fixed asset vehicle cost to the gain loss account, debit gain loss, credit fixed asset
7. move accumulated depreciation vehicle to the gain loss account, debit accumulated depreciation, credit gain loss
Resolution for Issue 'How to record sale of a vehicle for which we still have loan payments? We sold a vehicle to one of our drivers. He wrote a check for downpayment and for the rest of the amount he will do monthly payment. For this vehicle we still have loan payments (loan payable). How should I record this transacations? Thank you very much!' available: Yes (Solved).
Source: Intuit Community forum.
How to record sale of a vehicle for which we still have loan payments? We sold a vehicle to one of our drivers. He wrote a check for downpayment and for the rest of the amount he will do monthly payment. For this vehicle we still have loan payments (loan payable). How should I record this transacations? Thank you very much!: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for QBO
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