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Does QuickBooks Online have an amortisation schedule?

SOLVEDby QuickBooksQuickBooks OnlineUpdated 1 month ago

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.
  6. If this is a hand-written cheque, enter a Cheque no. and an appropriate Payment date.
  7. Choose a Location ▼ if applicable.
  8. Enter the Permit no.
  9. From the Amounts are ▼ drop-down menu, select the applicable tax.
  10. From the Category ▼drop-down, select the loan account.
  11. Enter a Description.
  12. In the Amount field, enter the amount paid off for the principal loan.
  13. From the GST ▼ drop-down menu, select a rate.
  14. Select the Billable checkbox if needed.
  15. From the Customer/Project ▼ drop-down menu, make a selection.
  16. From the Class ▼ drop-down menu, make a selection.
  17. Enter the interest expense account and the interest amount on the next line and follow the steps above to add all the info.
  18. Enter notes under Memo.
  19. Select Save and Close.
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.

To process amortisation of debts 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. Select a Payment method.
  7. Enter a Ref no. (Reference number).
  8. From the Location ▼ drop-down menu, make a selection.
  9. Enter a Permit no.
  10. From the Amounts are ▼ drop-down menu, select a tax.
  11. From the Category ▼drop-down, select the loan account.
  12. Enter a Description.
  13. In the Amount field, enter the amount paid off for the principal loan.
  14. From the GST ▼ drop-down menu, select a rate.
  15. Select the Billable checkbox if needed.
  16. From the Customer/Project ▼ drop-down menu, make a selection.
  17. From the Class ▼ drop-down menu, make a selection.
  18. Enter the interest expense account and the interest amount on the next line and follow the steps above to add all the info.
  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. Select Import if you need to add other journal entries outside of QuickBooks Online.
  4. In case the multi-currency setting is enabled, select a currency from the Currency ▼ drop-down menu.
  5. Enter the Journal date to reflect the date of amortisation.
  6. Enter the Journal no.
  7. On the first line under Account, select your amortisation expense account.
  8. List the amount under the Debits column.
  9. Enter a Description.
  10. From the Name ▼ drop-down menu, select a customer.
  11. From the GST ▼ drop-down menu, select a tax.
  12. From the Location ▼ drop-down menu, select a location.
  13. On the second line, under Account, enter your accumulated amortisation sub-account; the system will automatically put the amount in the Credit column.
  14. Repeat the steps you did for the first line.
  15. (Optional) If this asset is amortisable on a regular basis, and the amounts are going to always be the same, select 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.
  16. Enter notes under Memo.
  17. 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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