Question

Fixed asset & depreciation tracking

Forum|Forum|7 years ago
January 7, 2019
5 replies
4 views

I have 2018 quickbooks desktop pro. Is there an add on module or something to record fixed assets and calculate the associated depreciation schedules? Everything I have come across looks like I would need to buy quickbooks accountant premier version, which is $$$ every year. I am an accountant, but I don't handle other clients, just my husband's S-corp; so I know what I'm doing as far was recording FA and the depreciation. I guess I'm hoping there is another solution besides the expensive yearly fee for the accountant premier version. Thanks!

QuickBooks Desktop

qbteachmt

Level 11

You can use any tool, but what you are asking about is FAM = Fixed Asset Manager that is included when you buy QB Accountant Edition. FAM doesn't do anything but act as "smart" index cards; it connects to the data file to place Entries for you, instead of you making them. Only you know if the amount of FA you need to track makes this worthwhile, as well as Changing that QB data file to using the Fixed Asset Item type; that provides the connectivity.

And the FA regulations changed with the TCJA, making all of this much less hassle.

D

dkirkjohnson

When will QuickBooks Online support a Fixed Asset Manager tool? It is very cumbersome to track it in separately in Excel.

Fiat Lux - ASIA

Level 14

@dkirkjohnson

You need an additional app to integrate with QBO.

F

FTech

There's a new book out called Simple/Smart Fixed Asset Handling in QuickBooks, for the desktop editions. It shows how to set up Inventory Part Items in a special way to work with fixed assets.

It also has a link to a free spreadsheet for calculating depreciation (not tax depreciation, but methods like SL, 1.5DB, DDB, SOYD) and shows a procedure for getting depreciation transactions prepared by the spreadsheet imported into QuickBooks as a batch. (If you have 50 assets you'll have an imported transaction with 50 lines, because the entire fixed asset list is maintained in QuickBooks, in detail.)

There's no software cost beyond the cost of QuickBooks itself--and the price of the book, of course. I think the book's method is a big improvement over using Fixed Asset Items *if* you don't want to buy Accountant or pay the $300+ cost to add FAM to Pro or Premier.

qbteachmt

Level 11

I would never track this using Inventory Item Type. That ends up controlling Average Cost, for Pro/Premier, or optionally FIFO for Enterprise, and none of that applies to Fixed Assets. Sheesh.

You don't even need Items. I have a Fixed Asset listing by running a Quick Report on the asset accounts and the depreciation accounts, from assets placed on service from Purchase or construction data, and then Memorized transactions for depreciation, one of which is Annually out for 40 years. It isn't that hard to manage. I would never mix that into Inventory functions.

I don't bother using Fixed Asset Items, because I cannot bother with FAM, either. It's not that hard to manage manually. I have some customized reports in a Memorized Report Group, for all of this. It works fine.

qbteachmt

Level 11

Oh, for this: "So not everyone will be satisfied with using Straight Line depreciation for everything, which is the case if you use Memorized transactions to enter depreciation expense."

I take it you really don't take advantage of these tools, then? You set the Amounts and the cycle. You can set Monthly, half-year, Annually...

"and shows a procedure for getting depreciation transactions prepared by the spreadsheet imported into QuickBooks as a batch"

Why bother? The Amounts can change from year to year, you Memorize them and it's all Automatic. You don't need to be using only SL, to take advantage of Memorized transactions. I can take 5-year or 15-year or whatever applies and different amounts each time, and set up Memorized Transactions for each occurrence, out into the future. "Memorized" in QB desktop does not = the same and recurring. It = All Mapped out and defined. Whatever amount, convention, etc, and how you want them, you Memorize it. It's more powerful than a Spreadsheet to calculate and import, because it's already in QB, waiting to Trigger on each of those dates.

I do the same thing with Invoices. 84 monthly invoices takes me 3 minutes. All memorized and Automated, even though customers fall into 4 groups, and the charges vary between them.

When you try this, please run the Item Valuation reporting. See all the negative Quantity? That's makes a bit of a mess in the P&L, and in the Item Valuation reporting. That is the question I present for Functionality. You will see QB adjust for Negative on Hand = putting valuations to compensate into COGS.

Let us know.

Rustler

Level 15

@ljfd wrote:

I have 2018 quickbooks desktop pro. Is there an add on module or something to record fixed assets and calculate the associated depreciation schedules? Everything I have come across looks like I would need to buy quickbooks accountant premier version, which is $$$ every year.

When you go to purchase premier in the US, down at the bottom in pricing is this statement

Want to buy QuickBooks Accountant Desktop without a ProAdvisor membership,
or need to purchase for multiple desktop users? Call [removed]

What you did was buy a subscription, joined the pro advisor program which includes an annual update to QB, a newer version in other words

if you call and order it withOUT the pro advisor membership it is a flat price, and will be supported for 3 years for incremental updates. After 3 years it still works fine, with the exception of any online connections to banking, payroll, etc. So at worst, you buy it every 3 years

all my FA are under the parent account, a balance sheet allows me to collapse the sub accounts showing just the sum total as fixed assets. Once a year I bring up a memorized summary journal entry, and if necessary edit any values that need it, and save. Compound journal entry, depreciation expense, and then all accumulated depreciation accounts. Quick and easy.

john-pero

Level 12

My previous CPA and my current CPA both use a separate program for depreciation and enter one annual number from the 4562, I don't lift a finger. I also do not adjust fixed asset value by deducting depreciation from each asset inside of QuickBooks. Our accumulated depreciation account includes it all. But since the CPA has current values for each asset there is no problem when disposing of those assets.

Excel with manual calculations also works.

Rustler

Level 15

@john-pero wrote:

My previous CPA and my current CPA both use a separate program for depreciation and enter one annual number from the 4562, I don't lift a finger. I also do not adjust fixed asset value by deducting depreciation from each asset inside of QuickBooks. Our accumulated depreciation account includes it all. But since the CPA has current values for each asset there is no problem when disposing of those assets.

Excel with manual calculations also works.

A lot of people do it that way, I have a problem with it though, so as food for thought.

if there is a catastrophic event and the cpa's records/computer/data is lost, how long will it take to get the offsite back up (assuming there is one), or if the cpa dies and the estate goes into probate. Or you part ways, and want your detailed data - we have seen folks, on the other better site, asking what to do when requests for the release of the their data are ignored.

B

Bobby Chiggins

Exactly...

What do you think is the best solution?

Rose-A

Level 10

Hi, Bobby Chiggins.

I'm by no means an accounting professional, but I do have some insight to provide that can help get you with depreciation tracking.

To track the depreciation of an asset that you’ve already purchased (and added to the Chart of Accounts), you need two new accounts in QuickBooks:

Fixed Asset type of account called something like Accumulated Depreciation.
Expense type of account called something like Depreciation Expense.

After you set up these two accounts, you can record the asset depreciation with a journal entry.

Here's how:

From the QuickBooks Company menu, choose Make General Journal Entries.
(Optional) In the Make General Journal Entries window, change the Date field.
The Entry No. should automatically populate. If not, type a number for your journal entries. QuickBooks Desktop will automatically number subsequent journal entries.
Enter the General Journal Entry details.
1. Enter or select the first account in your transaction. If you are using an A/R (accounts receivable) or A/P (accounts payable) account, the first account in the General Journal transaction should be the AR or AP account.
2. Enter the debit or credit amount for the account you selected in step a.
3. (Optional) Type a memo describing the transaction. This memo will appear on reports and will include the General Journal entry.
4. Enter or select the Customer, Vendor, Employee, or Other name associated with the transaction. This is required if you use A/R or A/P accounts.
5. (Optional) If you selected an Expense account along with a customer or job, you can make the amount billable to the customer by checking the Billable column.
6. (Optional) Assign a class to the amount.
7. Repeat steps 4a through 4e to enter distribution lines until the transaction reaches a zero balance. The total in the Debit column should be equal to the total in the Credit column.
Click Save & Close.

However, I'd suggest consulting an accountant to help and guide on which account to debit and credit. Your accountant can provide more expert ways of dealing with this situation.

You can get more information about journal entry: https://quickbooks.intuit.com/community/Help-Articles/Record-a-journal-entry/td-p/203691.

Also, you may find these articles helpful:

You can always get back to us if you have more questions in tracking depreciation. Have a great weekend.