An entrepreneur can buy for example a phone, a computer or a car with deferred payment (i.e. pay the purchase later in installments). The deferred payment is recorded in the accounts as follows:
- Add the original purchase receipt to the accounts for the first installment payment. This receipt must show the total purchase price and the share of VAT. Our team will add the acquisition to your accounting.
- Add installment payments to the accounts each time you make a payment. The installment invoice is used as a voucher: it should show the installment amount along with the interest and financing costs of the deferred payment.
The total purchase price has already been added to your accounting at the time of the first entry, but when you add an installment payment to your accounts, the interest and other financial expenses in the installment are entered. The interest and financing costs of the installment are deductible expenses in bookkeeping.