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roy22
Level 2

If the depreciation a/c is "Other expense" its in the P and L and doesn`t carry forward. I still have the original asset cost in the books? What have I done wrong?

Normally both are balance sheet items and offset. Is there a way I can make the depreciation account a b/s to reduce the value of the asset, otherwise it will always be the same. Thank you
Solved
Best answer May 08, 2022

Accepted Solutions
Ethel_A
QuickBooks Team

If the depreciation a/c is "Other expense" its in the P and L and doesn`t carry forward. I still have the original asset cost in the books? What have I done wrong?

Hello there, @roy22. Let me share some insights about asset accounts in QuickBooks Online. It does not automatically depreciate fixed assets.

 

Crediting the asset account decreases the value while debiting the expense account increases it. When you record depreciation as an expense, it will affect your net income.

 

You can also get expert assistance from an account if you believe the results are unusual. Asset depreciation is complicated to calculate, and they'll be able to check this for you. We've included an article on depreciating assets here

 

For additional reference, you can use the following article to know more about the asset account type: Set up an asset account in QuickBooks Online.

 

Let me know if you need anything else about the depreciation. The Community and I will be here to help you.

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2 REPLIES 2
Ethel_A
QuickBooks Team

If the depreciation a/c is "Other expense" its in the P and L and doesn`t carry forward. I still have the original asset cost in the books? What have I done wrong?

Hello there, @roy22. Let me share some insights about asset accounts in QuickBooks Online. It does not automatically depreciate fixed assets.

 

Crediting the asset account decreases the value while debiting the expense account increases it. When you record depreciation as an expense, it will affect your net income.

 

You can also get expert assistance from an account if you believe the results are unusual. Asset depreciation is complicated to calculate, and they'll be able to check this for you. We've included an article on depreciating assets here

 

For additional reference, you can use the following article to know more about the asset account type: Set up an asset account in QuickBooks Online.

 

Let me know if you need anything else about the depreciation. The Community and I will be here to help you.

roy22
Level 2

If the depreciation a/c is "Other expense" its in the P and L and doesn`t carry forward. I still have the original asset cost in the books? What have I done wrong?

Thanks Ethel

 

I was suprised having entered the opening balances and the assets are unaffected.  Its far more usual to have the asset and depreciation just below it.  I`ll take your advice and amend the account, but there should really be a depreciation account built in.  Its never a P and L item 

cheers

 

Roy

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