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abufz2018
Level 1

How to add an Accumulated Depreciation in QuickBooks online for each fixed Asset Separately and accumulate for each type, please advise steps with video support

1.As we are at end of the year, i wanted to record accumulated depreciation of my all Fixed asset .

2. i am not sure if we created a proper  depreciation account for  each Fixed Asset/type, hence i want the steps to create  and step to record the accumulated depreciation ,so the effect will take place .

7 Comments
Rustler
Level 15

How to add an Accumulated Depreciation in QuickBooks online for each fixed Asset Separately and accumulate for each type, please advise steps with video support

There are several ways to structure the fixed asset account list, I do it like this
fixed assets
>>Truck, Dodge 1500
>> >> cost
>> >> accumulated depreciation Dodge 1500

>>Van, Mercedes
>> >>cost
>> >> accumulated depreciation Mercedes

journal entry
debit depreciation expense
credit fixed asset accumulated depreciation, Dodge 1500
credit fixed asset accumulated depreciation, Mercedes


jmcglynn1
Level 2

How to add an Accumulated Depreciation in QuickBooks online for each fixed Asset Separately and accumulate for each type, please advise steps with video support

I would like to group the asset with the accum deprec directly under the asset on the Balance Sheet.  However, I understand the asset is listed as a fixed asset, however, the accum depreciation has to an "other asset" so it can't grouped directly under the asset.  Is this correct?

 

Also, should be accum deprec show up as a negative number on the Balance Sheet?

Rustler
Level 15

How to add an Accumulated Depreciation in QuickBooks online for each fixed Asset Separately and accumulate for each type, please advise steps with video support

No accumulated depreciation is the same type of account, fixed asset, then it acts like a contra account lowering the full amount.  No it is not a negative entry, it is a credit entry to the fixed asset depreciation account

jmcglynn1
Level 2

How to add an Accumulated Depreciation in QuickBooks online for each fixed Asset Separately and accumulate for each type, please advise steps with video support

Thank you.  The amount of the accumulated depreciation would be a negative number though thereby reducing the asset amount.  Correct?

Rustler
Level 15

How to add an Accumulated Depreciation in QuickBooks online for each fixed Asset Separately and accumulate for each type, please advise steps with video support

no it is not a negative number, it is a positive number

the fact that it is logged as a credit in an asset account automatically reduces the parent asset account value

jmcglynn1
Level 2

How to add an Accumulated Depreciation in QuickBooks online for each fixed Asset Separately and accumulate for each type, please advise steps with video support

In QuickBooks Online, I credited accumulated amortization (as a fixed asset) and debited amortization expense and the accumulated amortization shows up as a negative number.  I am not sure what I am doing wrong...

Rustler
Level 15

How to add an Accumulated Depreciation in QuickBooks online for each fixed Asset Separately and accumulate for each type, please advise steps with video support

it is the way QB displays things, do not look at the chart of accounts, instead look at the balance sheet