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 vehicle 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
On a default Platinum setup when the "True Value" is entered on a vehicle record the system behaves differently depending on how the vehicle is coming into stock.
In all cases the the system will post an automatic vehicle expense for the difference between the actual "Purchase Price" and the "True Value".
On a Straight Vehicle Purchase
If the "True Value" is entered against a vehicle being purchased directly from a person, the expense will be posted against the vehicle being purchased, thus affecting the overall cost on this vehicle. This is a write-down of the value of the vehicle being purchased.
 | The vehicle price you enter here should always be Nett of V.A.T. |
On a Vehicle Purchased as a Part Exchange
If the "True Value" is entered against the vehicle being purchased as a part exchange, the expense will be posted against the sale vehicle, reducing the profit on the sale vehicle. 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 vehicle 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 vehicle price you enter here should always be Nett of V.A.T. |
See also
