How to Record and Track Installment Vehicle Purchases as Fixed Assets

An explanation of how to record the purchase of a new car in installments from a supplier for 5 years, for example, where the transaction is recorded using a purchase invoice, then linked to the fixed asset, with payment tracking and interest scheduling (if applicable).

Steps

1. Adding a Fixed Asset (Vehicle)

   • From the Assets section

   • Click Add Asset

   • Select the appropriate classification such as: “Vehicles”

   • Enter the vehicle data (value, useful life, depreciation method)

2. Creating a Purchase Invoice

   • From the Purchases section

   • Click New Purchase Invoice

   • Select the supplier name

   • Add an item “Vehicle” or “Car” with the total value

   • In the notes field, write “Installment purchase for 5 years”

3. Recording the Advance Payment (if available)

   • After saving the invoice, click Pay against the invoice

   • Specify the payment amount

   • Select the appropriate payment method

4. Recording Monthly Installments

   • Monthly, access the same invoice

   • Click Pay

   • Enter the installment amount

Note:

If you don’t have the fixed assets feature in your current plan, you can upgrade to a higher plan, or use Qoyod’s manual accounting entries to document the transaction.