Entering Fixed Asset Purchase with Business Credit Card

I can share some tips on how you can do that, wasteerase.

You can categorize the downloaded credit card transactions so they will be tied to the fixed asset account. Here's how to do it:

1. Select Transactions from the menu.
2. Go to the Banking tab, then choose the tile for the account you want to review.
3. Head to the For Review tab, then locate the credit card transaction. 
4. Click the transaction to expand the view.
5. In the Category or Assigned to column, select the appropriate fixed asset account,
6. Change the vendor or customer as needed. 
7. When everything looks good, select ​Confirm to add the transaction to your books​.

I'm also adding this article to learn how to track depreciation in the program using journal entries: Depreciate assets in QuickBooks Online.

Feel welcome to visit us again here with any concerns or questions you may have. The Community got you covered.

Hi wasteerase,

Hope you’re doing great. I wanted to see how everything is going about the issue in your fixed asset purchases. 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 anytime.

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

Can you tell me how this is done in QB desktop? Thanks.

Follow up question here...

Once the Fixed Asset record is created and the purchase on the credit card connected to the Fixed Asset.  How are monthly payments to the credit card recorded to pay as the Fixed Asset is paid down?  Do you split the payment somehow, just record it as a general expense, record it some other way?

Thanks!

Hello there, NorCalGal.
 

Let me guide you with the steps on how you can pay down a fixed asset in QuickBooks Online (QBO). 
 

Here's How:
 

1. Select + New.
2. Select Check. Or if you're in Business view, follow the steps to switch to Accountant view first. Then come back to these steps.
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.

Then enter the following in the Category details section of the check:

1. On the first line, select the liability account for the loan from the Category dropdown. Then enter the payment amount.
2. On the second line, select the expense account for the interest from the Category dropdown. Then enter the interest amount.
3. On additional lines, add any additional fees. Select the appropriate accounts from the Category dropdown.
4.  Select Save and close.
    

You can refer to this helpful article for more information: Record the Loan for an asset in QuickBooks Online
 

Moreover, if you want to learn more about how you can run reports for specific accounts in QBO, you can check this link: Run reports in QuickBooks Online

If you have further questions about how you can record or categorize a fixed asset, you can reach out to an accountant for further guidance or drop a comment here in the Community. We are always here to help. Have a good one!

.
 

@NorCalGal 

"How are monthly payments to the credit card recorded to pay as the Fixed Asset is paid down? Do you split the payment somehow, just record it as a general expense, record it some other way?"

From an accounting perspective, there's no connection between monthly cc payments and the fixed asset that was charged to the cc.  Monthly payments just reduce the cc balance.  You already recorded the fixed asset at the time it was charged to the cc.  

Thanks Rainflurry,

Appreciate the clarification.  If I go to the downloaded bank transactions and choose the credit card payment I want to add to the register in order to reconcile the statements, do I choose "Record as transfer" or "Record as a credit card payment"?  Record as credit card payment requires entering the Vendor (not sure who that would be), while "Record as a Transfer" doesn't require a vendor or account category.  It seems that if I were to enter a vendor or account category that would be problematic and an inaccurate accounting of expenses.  Appreciate if you could clarify this for me.  Thanks again for your help!

@NorCalGal 

Recording it as a credit card payment will list the payment under the vendor profile and in the cc register.  The vendor is the card issuer (US Bank, Chase, Wells Fargo, etc.)  If you record it as a transfer, it's still a payment, it just lists it in the cc register but not under the vendor profile.  It's a payment either way, it's up to you if you want it listed under the vendor.  Personally, I prefer to record it as a payment and not a transfer.