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Intuit

Does QuickBooks Online have an amortisation schedule?

Amortisation of debts and assets in QuickBooks Online will have to be done through manual transactions, such as cheques and journal entries. For example, the amortisation of debts can be done with a cheque.

To process amortisation of debts with a cheque:

  1. Select + New.
  2. Select Cheque.
  3. From the Payee ▼ drop-down menu, select a customer.
  4. From the Bank Account ▼ drop-down menu, select an account.
  5. Enter a Mailing address and select a Payment date.
  6. If this is a hand-written cheque, enter a Cheque # and appropriate Payment date.
  7. From the Location ▼ drop-down menu, choose a location.
  8. From the Amounts are ▼ drop-down menu, select a tax.
  9. Under Category, select the loan account.
  10. Enter a description.
  11. Under Amount, enter the amount paid off for the principal loan.
  12. In line #2, enter the interest expense account and the interest amount under Amount.
  13. Enter a description.
  14. Note: The amount on your cheque must equal the total of the lines listing principal and interest. For specific information on what accounts should be used, consult your accountant or bookkeeper.
  15. Enter notes under Memo.
  16. Select Save and Close.

To process amortisation of debts with as an expense:

  1. Select + New.
  2. Select Expense.
  3. From the Payee ▼ drop-down menu, select a customer.
  4. From the Payment account ▼ drop-down menu, select an account.
  5. Select a Payment date.
  6. From the Payment method ▼ drop-down menu, select a payment.
  7. Enter a Reference no. (Ref no.).
  8. From the Location ▼ drop-down menu, select a location.
  9. Under Category, select the loan account.
  10. Enter a description.
  11. Under Amount, enter the amount paid off for the principal loan.
  12. From the GST ▼ drop-down menu, select a rate.
  13. Select the Billable checkbox if needed.
  14. From the Customer ▼ drop-down menu, select a customer.
  15. From the Class ▼ drop-down menu, select a class.
  16. In line #2, enter the interest expense account.
  17. Enter an interest amount under Amount.
  18. Follow the same steps above done for line #1.
  19. Enter notes under Memo.
  20. Select Save and Close.

To handle the amortisation of intangible assets, you can create a journal entry to deplete it. To record this transaction you would normally have an expense account setup to track amortisation, along with a sub-account attached to your intangibles asset account for the tracking of the accumulated amortisation. Again, you would want to consult your accountant or bookkeeper to make sure you are using the appropriate accounts.

Once you have these accounts set up:

  1. Select + New.
  2. Select Journal Entry.
  3. From the Currency ▼ drop-down menu, select a currency.
  4. List the Journal date to the date you want to reflect the amortisation.
  5. On the first line under Account, list your amortisation expense account; list the amount under the Debit column.
  6. Enter a description.
  7. From the Name ▼ drop-down menu, select a customer.
  8. From the Name ▼ drop-down menu, select a customer.
  9. From the GST ▼ drop-down menu, select a tax.
  10. From the Location ▼ drop-down menu, select a location.
  11. On line #2, under Account, list your accumulated amortisation sub-account; the system will automatically put the amount under the Credit column.
  12. From the Name ▼ drop-down menu, select a customer.
  13. From the GST ▼ drop-down menu, select a tax.
  14. From the Location ▼ drop-down menu, select a location.
  15. Follow the steps above done for line #1.
  16. (Optional) If this asset is amortisable on a regular basis, and the amounts are going to always be the same, click Make Recurring. You can then schedule this transaction to be automatically entered so the amortisation happens without manual data entry on your part. Then select Save template.
  17. Follow the same steps above done for line #1.
  18. Enter notes under Memo.
  19. Select Save and close.

To be sure you are accounting for your amortisation correctly it is best to speak with your accountant or bookkeeper.

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