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Amberv99
Level 1

Fixed Assets

I've recently purchased computers for my business. This purchase was charged to my account in multiple small transactions which are then split into two months. There is also a transaction for monitors from a completely different vendor than the other parts. How should I record these transactions? 

Solved
Best answer August 03, 2021

Best Answers
Catherine_B
QuickBooks Team

Fixed Assets

I can show you how to keep track of your assets, Amberv99.

 

You can create an asset account and then a depreciation account to track the current value and depreciation of the things that your company owns. After setting up the accounts, you'll need to manually track depreciation using journal entries since QuickBooks doesn't automatically depreciate fixed assets. Let me show you the easy steps. 

 

Create an Asset account 

 

  1. From the left menu, click Accounting and select Chart of Accounts.
  2. At the upper-right, click New
  3. From the Account Type drop-down, select Fixed Assets or Other Assets.
  4. Under Detail Type, select the option that closely describes the asset.
  5. Name the account, then select the Track depreciation of this asset checkbox.
  6. Enter the current value of your asset in the Original cost field and the as of date. 
  7. Click Save and Close.

Set up a depreciation account

 

  1. Click Accounting and select Chart of Accounts.
  2. Select New.
  3. From the Account Type dropdown, select Other Expense.
  4. Select Depreciation under the Detail Type field.
  5. Give the account a name, like Asset Depreciation.
  6. Select Save and Close.

Create a Journal Entry

 

  1. Select + New button and click Journal entry.
  2. On the first line, select the asset account you use to track the asset and enter the depreciated amount in the Credits column.
  3. On the second line, select the Depreciation account you just created from the Account dropdown. Enter the same depreciated amount in the Debits column.
  4. Click Save and close.

I also suggest reaching out to an accountant who knows the best methods for your business preference on how you track depreciation. 

 

For additional information on this, I recommend the following articles:  

 

Feel free to mention me in your reply if there's anything else that you need assistance with. I'm just around the corner to help. Have a nice day!

View solution in original post

1 Comment 1
Catherine_B
QuickBooks Team

Fixed Assets

I can show you how to keep track of your assets, Amberv99.

 

You can create an asset account and then a depreciation account to track the current value and depreciation of the things that your company owns. After setting up the accounts, you'll need to manually track depreciation using journal entries since QuickBooks doesn't automatically depreciate fixed assets. Let me show you the easy steps. 

 

Create an Asset account 

 

  1. From the left menu, click Accounting and select Chart of Accounts.
  2. At the upper-right, click New
  3. From the Account Type drop-down, select Fixed Assets or Other Assets.
  4. Under Detail Type, select the option that closely describes the asset.
  5. Name the account, then select the Track depreciation of this asset checkbox.
  6. Enter the current value of your asset in the Original cost field and the as of date. 
  7. Click Save and Close.

Set up a depreciation account

 

  1. Click Accounting and select Chart of Accounts.
  2. Select New.
  3. From the Account Type dropdown, select Other Expense.
  4. Select Depreciation under the Detail Type field.
  5. Give the account a name, like Asset Depreciation.
  6. Select Save and Close.

Create a Journal Entry

 

  1. Select + New button and click Journal entry.
  2. On the first line, select the asset account you use to track the asset and enter the depreciated amount in the Credits column.
  3. On the second line, select the Depreciation account you just created from the Account dropdown. Enter the same depreciated amount in the Debits column.
  4. Click Save and close.

I also suggest reaching out to an accountant who knows the best methods for your business preference on how you track depreciation. 

 

For additional information on this, I recommend the following articles:  

 

Feel free to mention me in your reply if there's anything else that you need assistance with. I'm just around the corner to help. Have a nice day!

View solution in original post

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