Notes Payable—New Vehicles & Demonstrators

• ACCOUNT EXPLANATION
• TRANSACTIONS
• COMMENTS

Ford Credit Dealer EFT (DEFT)—Recommended Account Entries

• At month end, a listing should be made of the floor plan notes outstanding on new vehicles and demonstrators and the total reconciled with the balance in this account. A column on the new vehicle inventory schedule may serve as this listing.
• Interest charges on notes in this account should be recorded in Account 7180, Interest—Floor Plan—New.
• Interest accrued at month end on outstanding floor plan notes should be credited to Account 2421, Accrued Interest.
• Notes payable on vehicles in Account 1720, Company Vehicles, should be recorded in Account 2520, Notes Payable—Other—Long Term. The portion of such notes that becomes payable within twelve months should be transferred to Account 2040, Notes—Payable—Long Term—Current Portion.
• At the time a floor-planned new vehicle is sold or transferred, the floor plan note should be paid off.
• Create a DEFT Journal for appropriate transactions, using a source number in the Cash Receipt/Cash Disbursement Journal series (i.e. 55 or 550). This Journal should be used to record all EFT disbursement and receipt transactions. The net debit/credit balance will match the bank account detail. The hard copy Dealer EFT (COMBAT) report may be used as a source document for the DEFT entries into the dealer accounting system. Create separate journal screens if more than one input person is responsible for DEFT transaction entry. For multiple entry screens, a clearing account can be used to reconcile the multiple DEFT journal input entries, and to reconcile to the Cash Receipt/Cash Disbursement journals.