Step 4L - Understanding Accounting Integration - Control Accounts - Lien Payout Clearing

Modified on Mon, 26 May at 1:45 PM

This article is Step 4L of Understanding Accounting Integration - Control Accounts > Lien Payout Clearing


To see all the steps of Understanding Accounting Integration, please review - Overview - Understanding Accounting Integration



Step 4L - Control Accounts - Lien Payout Clearing



  • Let us first define what a Lien Payout actually is - it is the amount payable to a finance company to give the Dealership a clear title to a Unit that has been traded in.  


  • This General Ledger account is used as a clearing account and the account type is typically set up as a Current Liability.  At any one time the Dealership will be able to see from the balance of this Lien Payout Clearing General account how much is owed on lien payouts


  • When a Customer Order > Unit Deal containing a lien payout on a trade-in, is finalized but the Dealership is still responsible for paying out the lien



  • Once the Unit Deal is finalized, the lien payout amount will be credited to the Lien Payout Clearing General Ledger account 




  • When the Dealership is ready to payout the lien, they have two options:


Option 1 

  • Manually create a Vendor Invoice for the relevant Finance Company for the lien that needs to be paid out and allocate the line item to the Lien Payout Clearing General Ledger account


  • Then pay the lien attaching the payment to this Vendor Invoice


Option 2 

  • Pay the relevant Finance Company for the lien directly from your bank and allocate the payment directly to the Lien Payout Clearing General Ledger account


  • Both of the above options will get the desired result - the lien will be paid and a clearing entry will be made to the Lien Payout Clearing General Ledger account



  • The Lien Payout Clearing General Ledger account is cleared for that transaction





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