I'll share some tips in handling that transaction, InNeedofDirection.
The write-off involves eliminating all traces of the fixed asset from the balance sheet report. This way, its balance and the accumulated depreciation are reduced. Generally, you'll have to enter a journal entry depending if the vehicle is fully/partially depreciated to zero out the amounts.
When performing this process, I recommend consulting your bookkeeper or accountant to determine the affected accounts. Here are the basic steps on how to create a JE:
- Go to the Company menu.
- Select Make General Journal Entries.
- Enter the date and fill out the necessary fields.
- Make sure your debits equal your credits.
- Add a memo as needed, then Save & Close.
Once done. we can create a bank deposit and post it to the appropriate income category to record the insurance payment. I'll show you how:
- On the Home page, select Record Deposits / Make Deposits.
- Pick the account you want to put the deposit into from the Deposit to drop-down menu.
- Choose the insurance company from the Received from column.
- Enter the appropriate date, income account, and amount.
- Hit Save & Close.
In case you need some references in managing business finances, feel free to check out our Help Articles page. It includes topics about account management, banking, expenses, and more.
Let me know in the comments if you have other concerns about asset tracking in QuickBooks Desktop. I'm always ready to help. Take care and I wish you continued success, InNeedofDirection!
