Hi. Modular Sign Systems is winding down and I have sold all the assets of the business to another company. I have received payment for the sale of the assets. How do I enter this payment into Solar so that is not treated as income for VAT?
Hello Paul,
>From your description it sounds like the sale of the business assets will
come under 'Transfer of a going concern' rules, which means the sale is
outside the VAT. To record this in Solar Accounts create a Money Received
transaction with the VAT rate set to 0%, then click More Options > VAT
Treatment > Out of Scope. If the company is not receiving cash
compensation for the assets, then use an appropriate Equity account.
