Applying Honda Finance Funds to Unit Payoff
If Honda has transitioned you to the program that applies finance funds to the cost of the unit, you can follow the instructions below to reflect this accounting process in QuickBooks.
The financed amount of the unit on the DX1 invoice will send an invoice to Accounts Receivable in QuickBooks.
By using the AR to AP Transfer method, you can reduce the Lienholder invoice by the amount of the unit cost, receive the difference, record the deposit to the bank, and mark the unit as being paid.
A. In QuickBooks, locate the lienholder invoice that was created by DX1.
B. Add a line item to the lienholder invoice, using the Clearing AR/AP Transfer item. Enter the (-) negative amount of the cost of the unit. Save.
C. You can now receive the remaining balance amount and record your deposit to the bank.
D. Next, locate the bill for the unit that Honda paid off.
E. Add a line item to the bill using the Clearing AR/AP Transfer account, and enter the amount that Honda paid off from financing. Save.
F. The bill will now reflect a 0 balance.