Hi there, jkitners. Thanks for posting here in the Community. No worries, let me give you some insights regarding fixed assets without automatic entries.
The fixed asset feature automates how you manage and track your depreciation entries. However, you can manually record the depreciation after you set up your asset. I suggest reaching your accountant to regularly review how you track depreciation.
In tracking depreciation, here's how:
The first step, check if you already have a depreciation account to avoid duplicates.
- In Settings, select Chart of accounts.
- Go to Filter by name field, then enter “depreciation”.
- Once you see an account with “Depreciation” in the Name column, “Other Expense” in the Type column, and “Depreciation” in the Detail Type column, then your chart of accounts is already set up.
Otherwise, follow step 2 in this article to guide you on how to set up a depreciation account,
Once done, you can now record the depreciation.
Note that at the end of the year after you've talked to your accountant, create a journal entry to record the lost value.
- Choose + New. Then select Journal entry.
- Go to the first line, then select the asset account you use to track the loan from the Account dropdown. Enter the depreciated amount in the Credits column.
- On the second line, choose the Depreciation account you just created from the Account dropdown. Put the same depreciated amount in the Debits column.
- Hit Save.
You can also check out these articles to guide you further once you create your journal entry in the future:
You're always welcome to post here in the Community space. Count us in if you need additional help with the fixed assets feature or any related concerns. We're always ready to assist. Take care and have a great day!
