What effect does the true value figure have?
Contents
Summary
The following article explains the effect of filling in the "True Value" field on the [Purchase] tab of a unit stock number.
 | If your settings are not set correctly the expense postings outlined in this article will not be posted. If this is the case Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page and they will be happy to help. |
More Information
 | Units: Unit is a general term used to cover all types of vehicle and machinery, including items such as motorcycles, scooters, cars, trucks, vans, caravans, motorhomes, boats, tractors, ATVs, agricultural equipment, wholegoods and construction equipment. |
On a default Platinum setup when the "True Value" is entered on a unit record the system behaves differently depending on how the unit is coming into stock.
In all cases the the system will post an automatic unit expense for the difference between the actual "Purchase Price" and the "True Value".
On a Straight Unit Purchase
If the "True Value" is entered against a unit being purchased directly from a person, the expense will be posted against the unit being purchased, thus affecting the overall cost on this unit. This is a write-down of the value of the unit being purchased.
| The unit price you enter here should always be Nett of V.A.T. |
On a Unit Purchased as a Part Exchange
If the "True Value" is entered against the unit being purchased as a part exchange, the expense will be posted against the sale unit, reducing the profit on the sale uint. This is the equivalent of a write-back of the value of the part exchange so that it stands you at a realistic price. Ideally, you would reduce the price of the sale unit and reduce the actual purchase price of the part exchange so that the true value is not required, but this may not be possible in some circumstances.
| The uint price you enter here should always be Nett of V.A.T. |
See also
