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I am using QuickBooks Online. I just set up an asset account for a group of assets "Laptop Computers" We have 20 of them and of course I didn't want to list out each one individually because we track them by serial number in an Excel worksheet. In Quickbooks, I have one Fixed Asset account for all of them. I have subcategories of "Original Cost" and "Accumulated Depreciation" and will be recording depreciation monthly. I also have a Depreciation Expense account. My question is, if in the future we purchase more laptops, how would I record this purchase so that the value of new laptops will be added to value of old laptops combined? I am guessing this may be done in the register or journal entry but what would I credit and debit?
Thanks in advance!
Hey there, accountingprincess19.
Thanks for dropping by the Community today. I'm happy to help. What you are going to do is to record the laptop as expenses to combined with the old laptops. To do so, you can follow these steps:
1. Go to ( + ) New and under Suppliers choose Expense.
2. If it’s a new payee, type their name and click Add. You can click Details to add more information or Save and do it later.
3. Choose the account the money for this purchase came from.
4. Enter the date you made this purchase.
5. How did you pay for this purchase? Select cash, cheque, or credit card.
6. Under Account, choose an appropriate category for the item or service you paid for.
7. In the description field, add details about this purchase.
8. Click Save and New to save this expense and start another one, or Save and Close if you’re finished.
Then, regarding whether to use Journal Entry or not, I'd suggest consulting an accountant to help and guide how to record this. Your accountant can provide more expert advice in dealing with this concern.
Here is the article on how to Set up and record Depreciate Assets in QuickBooks Online. Once, you set up your assets, you can start recording their depreciations specifying depreciated values.
Reach out to me in the comment if you have any other questions or concerns. I'll be here to help. Have a wonderful weekend!
As another option, you may have an additional app to integrate with your QBO. With full automation enabled, the app will monitor new fixed asset additions. Depreciation will be calculated and journals automatically entered to your QBO at the end of every month. It’s only necessary to log back in and check the asset register as part of the annual review or if assets need to be marked as disposed.
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