Asset Purchases - Vehicle

Let me help you address your concerns, schand4462.

To answer your question on where and how to record depreciation of an asset, you'll need to manually track depreciation using journal entries since QuickBooks Online (QBO) doesn't automatically track fixed assets depreciation. To have something to record against, you need to create a liability account if you haven't created one yet. Here are the steps:

1. Go to Gear icon then Chart of accounts.
2. Select New.
3. Select either Other Current Liabilities or Long-term Liabilities.
4. Name the account.
5. Leave the Unpaid Balance blank, then select Save.

Now that you've created an account for the loan, you'll need to create a Journal entry to apply the loan to the proper asset accounts.

1. Select + New.
2. Select Journal entry.
3. For the first line under the Account column, select your new liability account.
4. Enter the amount of the loan you’re applying to the asset under the Credits column.
5. For the second line, select the appropriate asset account under the Account column.
6. Under the Debits column, enter the amount of the loan you’re applying to the asset.

For recording monthly payment, you can create a Check and match it later to the downloaded bank transaction.

1. Select + New.
2. Select Check.
3. Add a check number if you plan to send an actual check. If you use direct withdrawal or an EFT, enter Debit or EFT in the Check no. field.

While recording the monthly payment using check, please take note of the following:

1. On the first line, select the liability account for the loan from the Category drop-down. Then enter the payment amount.
2. On the second line, select the expense account for the interest from the Category drop-down. Then enter the interest amount.
3. On additional lines, add any additional fees. Select the appropriate accounts from the Category drop-down.
4. When you're done, select Save and close.

Just a heads up, I suggest consulting your accountant since many things are taken into consideration when assessing the original value of a purchase, such as trade-in, down payment, fees, taxes, and so on.

In addition, you can check out this article if you want to know which reports are available for your version: Reports included in your QBO subscription.

If you have further questions about recording the purchased vehicle or any QBO-related you can comment below, the Community is here 24/7. Take care!