Vehicle Split when reconciling transactions in Xero
April 23, 2013
You can work out the business use of your vehicle by keeping a logbook for at least 90 consecutive days. After 90 days you can work out the average proportion of business to private use of your vehicle and claim this back for tax purposes.
- Once you have done a log book for your vehicle usage you will then need to code your motor vehicle transactions accordingly.
- Let’s say your vehicle split is 80% business and 20% personal which means that 80% will go to motor vehicle expenses and 20% will go to drawings
- You can create a rule for this by going to Manage Account on your dashboard and click Bank Rules
- Click on create rule and select Spend Money
- In the 1st column you will select ‘payee’ and in the 2nd column select ‘contains’ and then in the 3rd column type in the name of the place you want to add as a condition to this rule e.g Caltex, BP. Ensure you select ‘any’ and not all at top of bank rule screen
- In the description enter in vehicle expenses and code to motor vehicle expenses and put 80% in the percent box
- Next add a new line and enter vehicle expenses again but this time you will code to drawings and put 20% in the percent box.
- Save this by clicking the save button at the bottom of the screen
- You can keep adding to this bank rule as required so whenever these transactions are imported, Xero will do the split and code automatically for you. All you need to do is hit ok.