Inventory to fixed asset

Our goal is to make QuickBooks as user-friendly as possible, @jbradley1.

I can see how managing your inventory is critical to hitting profit targets. As at the moment, you can continue following the process you used to transfer inventory to fixed assets.

The key to managing inventory and fixed assets is to adopt a robust tracking system as part of your accounting process. This enables you to calculate depreciation, monitor maintenance needs, and schedule repairs on your fixed assets. For an inventory, it helps you avoid running out of stock and can even control theft of your goods.

Also, I recommend consulting an accountant for further guidance. They may have several ways on how to move inventory to fixed assets after use.

You can as well visit our QuickBooks Blog so you'd be updated on the latest product updates, improvements, and feature releases.

Additionally, here's an article you can read through on how to use fixed asset manager in QuickBooks Desktop. 

Please know that you're always welcome to comment below if you have follow-up inquiries about managing your inventory and fixed assets in QBDT. I'm just around to help. Have a great day.

Hi, @jbradley1.

Hope you’re doing great. I wanted to see how everything is going about the inventory and fixed asset concern you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

No, this did not help resolve my question. I am still unsure of the proper process to move a inventory item to a fixed asset item after put in use. 

Thank you for responding, jbradley1!

If you haven't done so already, I encourage you to reach out to your accountant, as my colleague mentioned, since they can advise how to move inventory to fixed assets after use. If you do not have an accountant, no worries, I got you! QuickBooks offers a ProAdvisor service, where you can connect with experts within your area by simply entering your zip code. They even offer a free consultation! Here's how to connect with an expert:

1. Select this Find An Accountant link. 

2. In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.

3. Click Search.

4. Browse through the results and find an expert that works best for your business. 
   

If you have any questions, I'm just a post away. Have a wonderful day!

hi Jbradley1, 
i wonder if you manage to find a solution.. i am actually looking for the same answer

Hi @jbradley1 

I believe you are making servers from your equipment purchased and then giving them on rent to your customers.

In my view you can handle this by following this process.

1. Create a customer account in your own company name.

2. Whenever a server is ready, you can invoice it to your own company by sales. The invoicing should be on cost price without adding any profit margin. This will reduce your equipment inventory and increase your cost of goods sold.

3. At the same day, pass a journal entry as per following

Server Fixed Assets A/c   Debit

Accounts Receivable A/c Credit (select your own company as customer)

This will transfer the cost of server to the fixed assets account. You can track your servers in fixed assets by giving "Server ID" in the account name itself and make it as a sub account.

4.  At the year end, you should also pass a journal to nullify the increased sales figure in your books due to this transaction.

Hope this solves your query.

does this mean that my accounts receivable will always have a negative amount?

Let me share some information about negative amount in Accounts Receivables (A/R), Jin Chong. 

The AR has a negative balance when it has more credits than debits, because it would be the opposite of its normal balance. Also, negative A/R is a correct posting of an unapplied customer credit. If you want to apply the credit an invoice, just follow the steps below:  invoice. Here's how: 

1. Go to the Customers menu, then select Create Invoices.
2. Choose the customer from the Customer:Job drop-down.
3. Enter the necessary information.
4. Click Apply Credits.
5. Hit Yes to confirm the changes.
6. In the Apply Credits window, select the deposit from the Credits tab. (Make sure the amount is the same with the invoice)
7. Click Done. (The invoice will be marked as paid)
8. Hit Save & Close to save the invoice.

To learn more about Account Receivables, see the Accounts Receivable workflows in QuickBooks Desktop article. Visit our Help Articles page for more insights about managing your business in your software.

I'm just one post away if you need a hand with running A/R reports or any QuickBooks related. Just reply to this post and I'll get back to you. You have a good one. 

Why don't you try stock adjustment 

And use it as a bill of material 

Use asset account as the adjustment account 

This will give u also the availability to direct it to a specific customer if u want

Thank you for that idea.

When creating an sales invoice, there are two sets of entries created:

a. Dr. Accounts Receivable; Cr. Sales

b. Dr. Cost of goods sold; Cr. Inventory

In the above entries, you don't need the first. In the second entry, you need to convert the Cost of goods sold to Fixed Assets. Hence, I suggest that in the invoice, set the amount to zero so you don't create unnecessary amounts for Accounts Receivable and Sales. A journal entry will still be needed which reclassifies the Cost of goods sold to Fixed Asset, thus, Debit Fixed Asset and Credit Cost of goods sold

Cheers!