How do we deal with our own use of a purchase, such as a car?
As a sole proprietorship, you may incur professional costs for a purchase that you also use for private purposes. For example, for a car, or energy costs for a space that is also used privately. These cost items may not be booked entirely as professional expenses.
Within Yoursminc we manage this using: a cost category, an example of a cost category could be 'Car costs', see the following worked example:
Navigate to the menu Miscellaneous - Preferences - Cost categories and from the cost category overview select 'CAR COSTS'
You now see a Cost Category code and a description of 2 general ledger accounts:
Ledger account for business costs (Professional costs)
Here we have assigned general ledger account 241000 Rolling stock
Ledger account for private related costs
Here we have assigned general ledger account 612180 Private use car costs
% VAT deductibility
Enter the percentage from which VAT is deductible
Class
Select the cost category to which the deductible VAT percentage applies.
Business related %
Indicates the percentage of the costs that are business-related, as in the example shown, 75% of the car costs are considered business-related. In this situation we see 25% as privately related.
Additional information
An additional explanation of the relevant cost category can be recorded here.