This information applies to MYOB AccountRight version 19. For later versions, see our help centre.
ANSWER ID:9111, 9112
Hire purchase is a business agreement, similar to leasing, where purchased goods are paid for over a period of time rather than paying the full cost up front. Unlike leasing, the goods are owned outright after the final payment.
A start-up coffee roasting company doesn't have the capital to outlay the full cost of a commercial roasting machine. Instead, they enter into a hire purchase agreement to buy a roaster over a 3 year period which allows them to start roasting immediately.
AccountRight can be set up to record the specifics of your hire purchase arrangement, but there's a few variables which need to be considered, including:
the terms and conditions of your hire purchase agreement
your GST reporting basis (cash/payments or accrual/invoice)
the tax/GST implications (the ATO (Australia) or IRD (New Zealand) have good info on this).
As such, there's no "one size fits all" solution for setting up hire purchase.
Where to from here?
We might not be experts in the multitude of hire purchase arrangements, but our community forum is a great place to connect with business professionals who will be happy to share their insights.