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Iniuan22
Level 1

Equipment purchase

Where would in place the purchase of a piece of equipment ($750) in QuickBoo?

Solved
Best answer November 30, 2018

Best Answers
BettyJaneB
QuickBooks Team

Equipment purchase

Hi there, @Iniuan22

 

I'd like to Welcome you to the Community family. Allow me to share some information on where you can place the purchase of a piece of equipment in QuickBooks Online.

 

Equipment can be recorded as fixed assets, for these are the items that you can't immediately count as an expense when purchased. 

 

To set up an asset, please follow these steps:

  1. Select the Gear Icon at the top.
  2. Under Your Company, choose Chart of Accounts.
  3. On the top right, select New.
  4. Under the Account type, select either Fixed Asset.
  5. Select the detail type that best describes the asset, then click Next.
  6. Name the account.
  7. If you mark the Track depreciation of this asset box, the system will automatically create a Depreciation sub-account for the item.
  8. Fill in the original cost fields.
  9. Select Save and Close.

For more information about this process, please refer to this article: How do I set up an asset?

 

However, if you are unsure on which option to choose, I'd suggest consulting your accountant for assistance. This is to ensure that your books are accurate.

 

You can also get one-on-one help for your business:
Check out QuickBooks Live.

 

This should keep you moving today, @Iniuan22. Please don't hesitate to post any questions that you may have. Cheers to a productive and prosperous day.

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18 Comments 18
BettyJaneB
QuickBooks Team

Equipment purchase

Hi there, @Iniuan22

 

I'd like to Welcome you to the Community family. Allow me to share some information on where you can place the purchase of a piece of equipment in QuickBooks Online.

 

Equipment can be recorded as fixed assets, for these are the items that you can't immediately count as an expense when purchased. 

 

To set up an asset, please follow these steps:

  1. Select the Gear Icon at the top.
  2. Under Your Company, choose Chart of Accounts.
  3. On the top right, select New.
  4. Under the Account type, select either Fixed Asset.
  5. Select the detail type that best describes the asset, then click Next.
  6. Name the account.
  7. If you mark the Track depreciation of this asset box, the system will automatically create a Depreciation sub-account for the item.
  8. Fill in the original cost fields.
  9. Select Save and Close.

For more information about this process, please refer to this article: How do I set up an asset?

 

However, if you are unsure on which option to choose, I'd suggest consulting your accountant for assistance. This is to ensure that your books are accurate.

 

You can also get one-on-one help for your business:
Check out QuickBooks Live.

 

This should keep you moving today, @Iniuan22. Please don't hesitate to post any questions that you may have. Cheers to a productive and prosperous day.

Malcolm Ziman
Level 10

Equipment purchase

The IRS has a $2,500 rule. If it's less than that you can expense it, to something like "Small Equipment Expenses".  But you may want to record it as a fixed asset in your books for control purposes, and then include it in the book to tax profit reconciliation

garry clarkson
Level 2

Equipment purchase

its 6. Name the account where it gets confusing. Do we have to name that 'machinery' or can it be Apple Mac computer -  I did this and now I have two accounts one for the computer then another machinery. Asked before but answers tend to be confusing for the newbie. 

garry clarkson
Level 2

Equipment purchase

its number 6. 'name the amount' which gets confusing. name it Apple Mac computer or just 'machinery; I did this and then I get 2 lines in the accounts list one for the computer and one for machinery. Is this right? I have asked before but answers tend to be confusing for a newbie. 'Name it' isn't specific. Then how do I itemise this asset purchase in QB? 

AlcaeusF
Moderator

Equipment purchase

Hello there, @garry clarkson.

 

I can get it sorted out by providing some additional insights. When creating accounts in QuickBooks Online, you can choose the preferred name showing for your purchases in the Chart of Accounts.

 

To itemize your asset purchases into greater detail, I suggest breaking them down through sub-accounts. That way, they'll be organized accordingly in the system and will be more detailed on the financial reports.

 

The steps below will guide you on how to edit and add a sub-account to the existing parent:

 

  1. Click the Gear icon in the upper-right corner.
  2. Select Chart of Account.
  3. Search for the "Machinery" account.
  4. Press the drop-down arrow below the Action column, then choose Edit
  5. Change the name (example: Apple Mac computer)
  6. Put a check mark on the Is sub-account box. 
  7. Click Save and Close

Check out this additional screenshot for your visual reference of the result:

 

7.JPG

 

Also, here are some helpful references that you can check out about using QuickBooks Online:

 

Drop me a comment below if you have any other questions. I'll be more than happy to help. Wishing you a good one.

garry clarkson
Level 2

Equipment purchase

Cheers! I think its just the terminology and the idea that its flexible - too much flexibility can confuse :) I guess could be 'equipment' instead of machinery as we don't manufacture anything. Its a service industry producing videos and images. This kind of itemisation is what I was looking for. Could I then put the computer and the hard drive and scanners etc in separate names all in the sub account of computers? 

Jovychris_A
Moderator

Equipment purchase

I'm so happy to hear that my colleague resolved your concern, @garry clarkson.

 

Terminologies may be different in QuickBooks Online yet imply the same function. Yes, you can put the computer, hard drive, scanners, keyboard, etc. in separate names all in the sub-account of computers.

 

That way, the items can be categorized specifically to the right account.

 

I'll add this article as your guide in reconciling your account, so they match your bank and credit card statements: Reconcile an account in QuickBooks Online.

 

Please feel free to leave a message to this post if you need further assistance. The Community is always here to help. Take care, as always!

rosmith0669
Level 1

Equipment purchase

I have heavy equipment that I want to keep track of maintenance expenses for, but not quite sure where I should put this in QB. Basically if I have a loader that needs repairs or parts I want to be able to have a running total of these expenses and be able to scan the invoices in and have it all in one location.  Am I able to do that?   

Nick_M
QuickBooks Team

Equipment purchase

Hi there, rosmith0669. 

 

Thanks for stopping by this afternoon, while I'm not able to tell you exactly how to categorize your items and expenses I can show you how to add, edit and delete them. as well as provide you with an article you can use to help differentiate between bills, checks and expense. 

 

Create an expense

  1. Select + New.
  2. Select Expense.
  3. In the Payee field, specify a vendor. You can specify the name of a person or a business. If your transaction covers multiple petty cash expenses, leave this field empty.
  4. Select the Payment account to which to credit this expense.
  5. Enter the date of purchase in the Payment date field and specify the Payment method for the expense.
  6. (Optional) You can use the Ref no. field to enter an identifying number from the purchase receipt. (Note: QuickBooks Online Plus users: When location or class tracking are turned on, additional fields for Location or Class appear. You can turn on location or class tracking features in Account and Settings on the Advanced tab).
  7. (Optional) Enter a description of the expense.
  8. Enter the amount of the purchase and any Tax paid (if applicable).
  9. Select Save and close or Save and new.

Before you Save and close, you have some options to consider that could help track the expense:

  • If you are billing this expense to a specific customer, select the Billable checkbox and enter the name of the Customer. Billable expense tracking must be turned on to see the Billable column. You can turn it on in Account and Settings on the Expenses tab. Note: If you later receive a credit for an expense that was previously billed to a customer, be sure to specify that customer on the credit and select the Billable checkbox or the customer will be billed for the expense on the next invoice, and the credit will not appear.
  • To see a report of income vs. expenses for each customer, you can run an Income by Customer Summary report.
  • Enter any note or Memo you want to appear in the Register, on printed checks, and on reports that include this purchase.
  • Use the fields in the Item Details section to enter information about the product or service purchased.

You can find these steps as well as a tutorial video at the following link: Enter, Edit or Delete expenses

For assistance on figuring out how to categorize items, refer to this article: What is the difference between bills, checks, and expenses? 

 

If there's anything else I can help with, feel free to post down below, thank you for your time and have a nice afternoon. 

andresrpo2
Level 1

Equipment purchase

Hello, i am trying to add the fixed assets account, but unfortunately, there is not that option on my chart of accounts, what can i do?

Catherine_B
QuickBooks Team

Equipment purchase

I can walk you through creating an account, andresrpo2.

 

I'd like to verify which QuickBooks subscription you have so I can provide the correct steps in creating an account. We can only create accounts in QuickBooks Online and Desktop versions. 

 

Create an asset account in QuickBooks Online 

 

  1. Log in to this link qbo.intuit.com.
  2. From the Accounting menu, select Chart of Accounts
  3. At the upper-right, click New.
  4. Under the Account Type, select the type of asset account you'd like to create. 
  5. Select the Detail Type and enter a name to the new asset account.
  6. Click Save and Close

QuickBooks Desktop 

 

  1. Open your company file. 
  2. Click Lists from the menu and select Chart of Accounts.
  3. At the bottom menu, click Account and then New. 
  4. Complete the account details and then Save & Close.

For more details on handling your Chart of accounts, you can use this link: Learn about the chart of accounts in QuickBooks.

 

Let me know if you have other questions. Take care and have a great day!

DonnaTDG
Level 1

Equipment purchase

BettyJane,

After entering a piece of equipment as a fixed asset, how do we include charging, or rather accounting, for its use to the customer. E.g., we have a chainsaw, and we charge $100/day for it, but don't want that as a line item in estimates or invoices.

Additionally, when we pay to have it services, how do we list that cost in our expenses?

Thank you,
Donna

Dee09
Level 1

Equipment purchase

I have a same question.  Can anyone help on this matter?

Dee09
Level 1

Equipment purchase

I have same question.  Can anyone help on this matter?

CharleneMaeF
QuickBooks Team

Equipment purchase

Thanks for joining us on this thread, Dee09.

 

If you don't want to add the charge to the estimates or invoices, you can directly enter the amount into the account type you've recorded the equipment.

 

Here's how:

  1. Select + New and then choose Bank Deposit.
  2. From the Account drop-down menu, choose the account you want to put the money into.
  3. On the Add funds to this deposit, add the details of the transactions.
  4. Once done, click Save and close.

 

I'd also recommend consulting an accountant to guide you with the process. If you don't have one, you can use our Find-an-Accountant tool to look for an expert near you.

 

In case you need to calculate your asset's depreciation, I'd suggest checking out to learn more about the process:

 

 

Please let me know if you have other questions about managing your assets. I’m determined to answer them for you. Have a great day!

accountingatheart
Level 2

Equipment purchase

I had a quick question. I have a created a power, plant and equipment account for for my client. This is his second year. Do I need to cero out the first year power, plant and equipment amount? or do I leave it like that so it it accumulates over the years?

Jennalyn G
Level 1

Equipment purchase

We purchased a vehicle for $18000. I added a new account with the vehicle name but I do not have the option  Track depreciation of this asset box. This would be very helpful to have. Is this an upgrade to QBO?

Archie_B
QuickBooks Team

Equipment purchase

Hi there, Jennalyn G. Let me share some information about tracking asset depreciation in QuickBooks Online.

 

Your QuickBooks Online account doesn't necessarily need an upgrade. We also haven't made any enhancements or changes to this feature, so you should be able to track an asset's depreciation.

 

For the option to show, we simply need to switch from Accountant view to Business view before creating an asset account.

 

After switching to Business view, you can delete and recreate the vehicle's account be sure the Account Type you select is Fixed Asset, and choose the appropriate Detail Type. I'll show you how:

 

  1. Go to the Gear icon at the upper right.
  2. Under Your Company, choose Chart of Accounts.
  3. At the top right, hit New.
  4. In the Account Type, select Fixed Asset.
  5. Choose the Detail Type that best describes the asset.
  6. Name the account.
  7. Mark the Track depreciation of this asset box, then the system will automatically create a Depreciation sub-account for the item.
  8. Fill in the original cost fields.
  9. Once done, hit Save and Close.

     
    account.PNG

 

I've added this article for more information: Set up an asset account in QuickBooks Online.

 

To understand more about the chart of accounts in QuickBooks Online, use this link as a reference: Learn about the chart of accounts in QuickBooks Online.

 

Feel free to get back to this thread if you still need help with anything or have other concerns about managing your accounts. I'll be here to assist. Have a wonderful day!

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