Should a new vehicle be listed as a long term liability or a fixed asset?
Db Asset XX Cr LT Liability XX You can set up a parent Long Term Liability Acct. and put all LT liabilities as sub accounts. When you enter the monthly bill, assign the LT Liability acct. I have a parent interest expense account that I have sub accounts under with every loan that we have. If you know the interest in each payment, enter as stated. This is nice because when I pull up my COA’s, I have all the actual balances of each account. By having all of the interest expense seperate, it’s easier to check for errors if you’re trying to balance out for the eoy. You can collapse the sub accounts on reports that you don’t need all of that detail for, when you’re just looking for the bottom line.
