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Lisa619
May 24, 2021
Question

Adding an existing fixed-asset (vehicle)

  • May 24, 2021
  • 2 replies
  • 58 views

We never added our fixed-assets into Quickbooks. These are assets that we had before we even started to use the program. Items include a company vehicle and equipment (tools). How can I add these into QB so that it shows on the balance sheet? I have tried to add a new account in the chart of accounts but there is no option for me to add a value - so I then went into the chart of accounts - selected my newly made account and added the journal entry to record the fair market value. This resulted in a "split" and QB automatically deducted the value I entered. This caused our balance sheet to record $0 for the fixed asset. HELP.

2 replies

C
ChristieAnn 11
Level 9
May 24, 2021

Hi there, Lisa619.

 

Welcome to the QuickBooks Community. I'll ensure you're able to record asset entries that are associated with Items include a company vehicle and equipment (tools).

 

There is a specific categorization for every entry in QuickBooks Online. Fixed Asset are the purchased items for long-term use. These are usually equipment, machinery, land, and cars. That said, you can enter company vehicle and equipment (tools) as a purchased asset in your QuickBooks Online. Before that, you'll have to create an asset account connected with the correct detailed type where the equipment will be posted. While doing this, I also recommend consulting an accountant for additional guidance on posting correct accounts or the right category of the entry. This way, you're able to make sure that your account stays accurate.

 

Here's how to create account: 

 

  1. Go to the Gear icon at the top.
  2. Under Your Company column, choose Chart of Accounts.
  3. On the top right, select New.
  4. From the Account type, select either Fixed Asset.
  5. Select the detail type that best describes the asset (Vehicles and Equipment).
  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 additional information, you can refer to this article: Set up an asset account in QuickBooks Online.

 

After that, you can now create an expense and use the asset account you've made.

 

Please click this article on how to set up a particular account to manually track depreciation using journal entries: Depreciate assets in QuickBooks Online.

 

If there's anything else that I can help you with, please let me know by leaving any comments below. I'll be here to lend a hand.

A
Alund89
January 14, 2023

Fixed assest of new leaf filter gutters. I created a new account. It shows up as fixed assest. I put zero as the balance but ahiuld I have put the loan amount? I have zero interwst for 48 months so I wasnt sure how to add it. Or what to do!

Rainflurry
Rainflurry
Level 11
December 20, 2023

Hello,

i think my question was not very clear sorry. Our owner purchased and paid for in full for a truck prior to opening his business.  I believe it was recommended to add it to the fixed assets, but I am confused on how to do so if he purchased it with personal funds prior to opening the business. We are using quickbooks desktop. 

thank you 


@Longoriasbuilding 

 

"Our owner purchased and paid for in full for a truck prior to opening his business. I believe it was recommended to add it to the fixed assets, but I am confused on how to do so if he purchased it with personal funds prior to opening the business."

 

Ignore the post from @RCV .  It looks like an AI-generated post.

 

Adding the truck as a fixed asset of the business shouldn't be done unless the truck is used 100% for business use.  It also depends on what type of business this is - sole proprietorship or S-Corp or ???  When an owner contributes personal property to a business, it should be recorded at fair market value (FMV) as of the day the vehicle is contributed to the business, not at cost (what the owner paid for it).  The FMV is entered as a fixed asset and is offset with an equal amount to the owner's equity account.  The journal entry to record this is a debit to the vehicle's fixed asset account and a credit to the owner's equity account at FMV.  If this is a sole proprietorship, use their 'Owner's Capital' or 'Owner's Contribution' equity account.  If this is an S-Corp, use their 'Shareholder Contributions' equity account.  It's a good idea to run a blue book value report so you have something to substantiate the value of the vehicle for your records.        

 

Fiat Lux - ASIA
Fiat Lux - ASIA
Level 14
May 24, 2021

@Lisa619 

As an additional option, you may have an additional app to integrate with your QBO and manage your fixed asset and record the depreciation cost automatically.

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