Don't know if I'm having a brain fog moment or overthinking as it's been a long time since I did an asset purchase. My employer has just purchased a vehicle, paid a deposit and the rest will be paid by 36 monthly payments. It is an interest free loan and we will own the vehicle at the end of the installments.
Vehicle cost inc VAT £37703.71
Tax and first reg fee £315
Deposit paid £11405.61
then 36 monthly payments of £739.25
Do I account for all the VAT first? (I think I do, but this is where I think I'm overthinking things!)
Secondly, how do I account for all this in Xero - I can't do a manual journal from the bank account! Xero said to set up a loan account which I have done but then I can't account for the deposit being paid from the bank and set up a recurring journal for the monthly repayments.
Any help gratefully received!