Connect with and learn from others in the QuickBooks Community.
Step by Step
Go to Solution.
You have to make the Fixed Asset balance zero., and against that you create a Receivable.
Credit the full Original Cost of the vehicle that is in the books, to bring it to zero.
Debit the balance of accumulated depreciation for the vehicle,
to bring it to zero. (the difference is the Net Book value)
Debit a Loan Receivable
(current asset) with the amount you are selling the vehicle for.
Debit or credit the difference (sales price less NBV) to a P&L Other account "Gain/Loss on sale of Fixed Asset"
Monthly thereafter, when the employee pays,
in the Bank Deposit form.
View solution in original post
How do you create the Loan receivable?
Hi there, @RQ.
You'll want to create a loan account in your chart of accounts. Here's how.
In your QuickBooks Desktop (QBDT):
Here's an article you can read for more details: Create, edit, or delete account in QuickBooks Desktop.
In case you need to create a journal entry in your QBDT, you can check this article for guidance: Create a journal entry in QuickBooks Desktop.
You can always get back to us if ever you need help. Helping you is our top priority. Take care!