Two kinds of partner, both handled
VehicleERP separates the two ways money comes into a dealership. A vehicle partner funds a specific car and shares in that car’s profit - see adding a vehicle partner. A business partner invests in the company and shares in overall profit - see business partners & profit sharing. Each has its own ledger, so nothing gets mixed up.
What gets recorded
- Partner investment - capital a partner brings into the business.
- Vehicle partner loan and loan return - money lent towards a specific car, and its repayment, with the running balance.
- Profit-share percentage per vehicle - the agreed split, entered when the partner is added to the car.
- Vehicle partner profit share - calculated automatically when the car sells, from the real profit after every expense.
- Company profit share - overall profit distributed across business partners with a clear ledger.
- Partner salary - a fixed monthly draw for a working partner, kept separate from profit share.
Illustrative example - a partner-funded car
- · Dealer buys a car for ₹5,00,000 and spends ₹40,000 on reconditioning and expenses.
- · A vehicle partner lends ₹3,00,000 towards the car with an agreed 40% share of profit.
- · The car sells for ₹6,10,000.
VehicleERP posts all four lines automatically when the sale is recorded - the partner sees the same figures you do.
Why dealers switch for this alone
Partner settlements are where spreadsheet dealerships have their worst arguments: an expense someone forgot to add, a loan return counted twice, a percentage applied to revenue instead of profit. Because VehicleERP calculates the share from the car’s actual landed cost and actual selling price, both sides are looking at the same number - and every line is traceable to an entry with a date.