The system supports Finance Agreements, which is used to calculate and manage hire purchase or lease purchase agreements.

The set up a Finance Agreement, navigate to Bank > Finance Agreements and click “New Agreement”.

The system will ask for the following information:

• Account code – This is a short account code for the agreement;
• Account name – The full name for the agreement;
• Bank account – Choose the relevant bank account, where payments will be taken;
• Asset financed – If the agreement relates to an asset, then choose the asset here;
• Part of opening balance – If this agreement is part of the opening system balance, then tick the box here;
• Agreement date – The date at which the agreement was entered into;
• Agreement reference – This may be a reference number with the financing company, or something else;
• Price of asset – The total value of the asset, excluding VAT;
• Deposit – The value of any deposit against the asset;
• Interest and charges – The total value of any interest or charges under the agreement;
• Term – The full term of the agreement in month i.e. 24.

Next, the system will ask for repayment details:

• Enter any additional charges;
• Enter the date of first repayment;
• Enter the value of the repayments, making sure to enter the repayment value and interest separately;
• Enter any additional charges under the last payment.

The system will calculate the total cost of repayments and the monthly repayments required.

When finished, the system will save the Finance Agreement and monthly repayments will be deducted against the total. The system will also ensure that users are reminded to make monthly payments through reminders and alerts on the Summary screen.