Comments on: QuickBooks and Floor Plan Financing

By: Michele Hand

Michele Hand — Tue, 31 Jan 2012 21:29:09 +0000

Laurens V.,

As the provider, your QB file will show this as Customers who owe you; the accounting would be done using Estimates, Sales Orders, Invoices and/or Sales Receipts (depending on which QB program you are using and which steps you want to track and report for this loan process) and use Other Charge type of items, as these can be linked to Other Asset accounts and manage the data flow for Flooring services. The interest and finance fees would be your Service items and are income to you, of course.

Beyond this, setting up the accounting flow is something to discuss with your CPA, because your initial Flooring is going to be income but this income is not yet paid; it is offset by the fact that you are “carrying the paper.” The accounting data flow varies for these activities and would be something that needs to be set up specifically for your business.

By: Laurens V.

Laurens V. — Fri, 25 Nov 2011 17:34:17 +0000

I meant to say “…if only I could find such an aid FOR the floorplan LENDER to set up QB…”
Thanks again.

By: Laurens V.

Laurens V. — Fri, 25 Nov 2011 17:31:15 +0000

, if only I could find such aid the floorplan lender to set up QB…
I just started to provide floorplan services to a small used car dealer and have a hard time finding a similar article. First time business owner as well so QB is VERY new to me. Any direction you can give me? Thank you much in advance!

By: Michele Hand

Michele Hand — Fri, 11 Nov 2011 17:33:23 +0000

Hi, Todd: The main method shown here includes using a Bill to the Flooring Finance Company, posting the floored value of the asset (such as a Vehicle) to the Flooring Debt account. For additional charges such as Interest, you would create another bill to the same Vendor Name. On it, you post to your Interest expense account. On this new bill, be sure to put something in the Ref field so you can associate this interest and fees bill with the specific vehicle.

When the vehicle sells, you use Pay Bills as noted above.

You will see the two bills for this vendor name that have the related Ref info. One is the Asset and one is the expenses. Select them both to generate one payoff bill Payment Check.

Let me know if this doesn’t answer your question.

By: Todd Nelson

Todd Nelson — Wed, 09 Nov 2011 03:06:20 +0000

I do have an issue with this that maybe could be expained. When dealing with a floorplan expense I find that the amount floored is not the same as will be owed upon selling. The floorplan company will charge intrest and sometimes a fee to payoff. So in above example floored amount was $25,000. Upon sale the payoff to the floorplan company would be $25235.00 with fees and intrest

By: Maria Ines

Maria Ines — Sun, 23 Jan 2011 00:45:47 +0000

My Lord! Bless you Indeed!
I been looking for this kind of instruction to set up my clients books on the right way, the floor account for car dealership.
His old account had a set up like a Cash Flow account for re-investment I was unable to balance the books ,It was no way to square ,Suddenly I realize Flooring ,Flooring, flooring was a third party situation.
You are a Lifesaver Thanks again for share your knowledge’s.
your step by step instructions ,teach me what I need to do and make just a few small changes according to my clients need. Thanks again.

By: Karen Pugh

Karen Pugh — Tue, 20 Jul 2010 02:32:45 +0000

You are a life saver! Now if I can just get my client to supply adequate information, so I can do the accounting! Thank you so much for being so thorough!

By: Eddard Stark

Eddard Stark — Wed, 14 Jul 2010 18:58:38 +0000

Fantastic article!