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sahug1
Level 1

How to record a used vehicle purchased

how do i track expenses incurred for a used vehicle

Solved
Best answer March 11, 2019

Best Answers
Rustler
Level 15

How to record a used vehicle purchased

you buy a car, you first create a fixed asset account car, with a sub account accumulated depreciation car

write the check and use the car fixed asset account as the expense for the check

IF, if you have repairs to the car at the time of purchase to get it running, then you post those to the fixed asset account car too

after the car is in use, expenses are just that, auto expense, repair expense, fuel expense, etc

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8 Comments 8
Rustler
Level 15

How to record a used vehicle purchased

you buy a car, you first create a fixed asset account car, with a sub account accumulated depreciation car

write the check and use the car fixed asset account as the expense for the check

IF, if you have repairs to the car at the time of purchase to get it running, then you post those to the fixed asset account car too

after the car is in use, expenses are just that, auto expense, repair expense, fuel expense, etc

gendusobillingandconsulting
Level 1

How to record a used vehicle purchased

If I purchase multiple vehicles do I create an account for each one? If they are financed are they still a fixed asset? Thanks

Rustler
Level 15

How to record a used vehicle purchased

yes, each car should have its own fixed asset and associated accumulated depreciation account, it just makes it so much easier if there is an accident and the car is totaled or you sell/trade it in

 

yes being financed has nothing to do with it, it is still a fixed asset

social209
Level 2

How to record a used vehicle purchased

Need confirmation.

 

I purchased a truck for 12k, the amount came out the bank account. In QB i will create a fixed asset (Work Truck) and than when i am entering my checking account information for that month, i will just connect it with that one?

 

 

JDL_Integrity
Level 1

How to record a used vehicle purchased

What type of account is the accumulated depreciation? Expense? 

lizk1
Level 1

How to record a used vehicle purchased

I created the fixed asset for the truck and put the original cost, which is a field to set up the fixed asset.  I used the truck fixed asset account as the expense for check that we wrote for the truck.  It doubled the QB asset balance.  Should I not have put in the original cost in the indicated field?

mbuckner86
Level 1

How to record a used vehicle purchased

It is not an expense, it is a "Fixed Asset" type account. 

mbuckner86
Level 1

How to record a used vehicle purchased

That is correct, you should have left that field that indicates "Orig Cost" blank. Since you wrote a check for the original cost of the vehicle, you can just select the Fixed Asset account as the account category. 

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