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Does QuickBooks Online have an amortization schedule?

SOLVEDby QuickBooks47Updated 1 month ago

Amortization of debts and assets in QuickBooks Online will have to be done through manual transactions, such as checks and journal entries. For example, the amortization of debts can be done with a check.

To process amortization of debts with a check:

  1. Select + New.
  2. Select Check.
  3. From the Payee ▼ dropdown menu, select a customer.
  4. From the Bank Account ▼ dropdown menu, select an account.
  5. Enter a Mailing address and a Payment date.
  6. Choose a Location, Project or Class ▼ if applicable (and turned on).
  7. From the Amounts are ▼ dropdown menu, make a selection.
  8. If this is a hand-written check, enter a Check no and appropriate Payment date.
  9. From the Amounts are ▼ dropdown menu, select a tax.
  10. Enter an Import Declaration number.
  11. Under Category, select the loan account.
  12. Enter a description.
  13. Under enter the Amount paid off for the principal loan.
  14. From the Tax ▼ dropdown menu, select a rate.
  15. Select the Billable checkbox if needed.
  16. From the Customer/Project ▼ dropdown menu, make a selection.
  17. Select the Billable checkbox if needed.
  18. Enter the Markup% amount.
  19. From the Customer/Project ▼ dropdown menu, make a selection.
  20. From the Class ▼ dropdown menu, make a selection.
  21. On line 2, enter the interest expense account and the interest amount under Amount.
  22. Enter a description.
    Note: The amount on your check 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.
  23. Enter notes under Memo.
  24. Select Save and Close.
Note:The amount on your check 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 amortization of debts as an expense:

  1. Select + New.
  2. Select Expense.
  3. From the Payee ▼ dropdown menu, select a customer.
  4. From the Payment account ▼ dropdown menu, select an account.
  5. From the Purchase Location ▼ dropdown menu, make a selection.
  6. Select a Payment date.
  7. From the Payment method ▼ dropdown menu, select a payment.
  8. Enter a Ref no. (Reference number).
  9. From the Location ▼ dropdown menu, select a location.
  10. From the Amounts are ▼ dropdown menu, select a tax.
  11. Enter an Import Declaration number.
  12. Under Category, select the loan account.
  13. Enter a description.
  14. Under Amount, enter the amount paid off for the principal loan.
  15. From the GST ▼ dropdown menu, select a rate.
  16. Select the Billable checkbox if needed.
  17. From the Customer ▼ dropdown menu, select a customer.
  18. From the Class ▼ dropdown menu, select a class.
  19. From the Tax ▼ dropdown menu, select a rate.
  20. Select the Billable checkbox if needed.
  21. From the Customer/Project ▼ dropdown menu, make a selection.
  22. From the VAT ▼ dropdown menu, select a rate.
  23. Select the Billable checkbox if needed.
  24. Enter the Markup % amount.
  25. From the Customer/Project ▼ dropdown menu, make a selection.
  26. From the Class ▼ dropdown menu, make a selection.
  27. On line 2, enter the interest expense account.
  28. Enter an interest amount under Amount.
  29. Follow the same steps above done for line 1.
  30. Enter notes under Memo.
  31. Select Save and Close.

To handle the amortization 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 amortization, along with a sub-account attached to your intangibles asset account for the tracking of the accumulated amortization. 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. From the Currency ▼ dropdown menu, select a currency.
  4. Enter the Journal date to the date you want to reflect the amortization.
  5. Select Import if you need to add other journal entries outside of QuickBooks online.
  6. On the first line under Account, list your amortization expense account; list the amount under the Debits (ZAR) column.
  7. On the first line under Account, list your amortization expense account.
  8. From the Journal Code ▼ dropdown menu, make a selection.
  9. List the amount under the Debits column.
  10. Enter a description.
  11. From the Name ▼ dropdown menu, select a customer.
  12. From the Name ▼ dropdown menu, select a customer.
  13. From the GST ▼ dropdown menu, select a tax.
  14. From the Location ▼ dropdown menu, select a location.
  15. From the Name ▼ dropdown menu, select a customer.
  16. From the Tax ▼ dropdown menu, select a rate.
  17. On line 2, under Account, enter your accumulated amortization sub-account; the system will automatically put the amount in the Credit column.
  18. Repeat the steps you did for line 1.
  19. (Optional) If this asset is amortizable 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 amortization happens without manual data entry on your part. Then select Save template.
  20. Follow the same steps above done for line 1.
  21. Enter notes under Memo.
  22. Select Save and close.

To be sure you are accounting for your amortization correctly it is best to speak with your accountant or bookkeeper.

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