How do I record the sale of a Fixed asset with a lost in value for quick books online

Hello there, Aluzardo,

In QuickBooks Online, after you set up your assets, you can record their depreciation. We don't automatically depreciate fixed assets. You need to manually track them using journal entries.

If you haven’t already, create an account to track depreciation.

1. Go to Settings and select Chart of Accounts.
2. Select New.
3. From the Account Type dropdown, select Other Expense.
4. From the Detail Type dropdown, select Depreciation.
5. Give the account a name, like "[Asset] depreciation]"
6. Select Save and Close.

Now you have accounts to track your assets and their depreciation.

1. Select + New. Then select Journal entry.
2. On the first line, select the asset account you use to track the loan from the Account dropdown. 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. Select Save.

It's best to consult your accountant with this process.

Let me know if you have other questions. 

Hi, Yes I have created the depreciation account, however, I do not know how to register the sale? when I create an invoice for the equipment that was sold, it goes into the product and service, not into the equipment. I do not have any inventory because we are a service company. So it is very confusing to do it on QBO. How do I register the actual sale?

Hi Aluzardo,

Did you find the solution for this? I'm in the same situation and would love to know the process.

Jeremy.

and a year on still having the same issue here, insane how complicated this is for a simple sale of an asset

I have the same question.  To record the sale of an asset, for that transaction, do you just choose the asset for the "category" of the transaction?  

@bradleygood745 @bbqman 

Recording the sale of an asset is not at all straightforward from an accounting and tax perspective.  If you didn't take depreciation but should have, you need to contact a CPA/tax accountant.  If you have depreciated the asset, you will create a journal entry that looks something like this:

If you have a gain on the sale, the treatment of the gain may differ depending on the asset and how long you owned it.  Contact a CPA/tax accountant for how to record that.

1.new transfer from fix asset account to bank account with amount of your sale price.

2. Jounally entry to add a depreciation expense with amount of your loss value.

1. New transfer from fixed asset account to bank account, the amount is equal to your sale price. 
2. Jungly entry to add a depreciation expense of your value loss. As the first reply.

the question is-- How do you create the account - Loss on disposal of asset.

Where in qbo do you create that account so you can use it for the journal entry?

Setting up a dedicated account for asset disposal in QuickBooks Online can be done with ease, redbaron1964. I would be happy to offer my assistance in this matter.

In QuickBooks Online, adding accounts can be done through the Chart of Accounts menu. Below are the steps you need to follow to accomplish this:

1. Go to Settings and click on Chart of Accounts.
2. Hit New.
3. Add the correct Account Type and Detail Type.
4. Enter the account name, you can put in Disposal Asset.
5. Once done, select Save and Close.

To ensure the account is set up correctly, I recommend consulting your accountant for advice to avoid any issues. If you don't have one, you can use our Find-an-Accountant tool to look for an expert near you. Afterward, you use it when creating a journal entry.

Moreover, you can try to run a report such as profit and loss or balance sheet to check if the entries are accurately reflected in your financial statement.

Furthermore, I'm adding these resources to help you ensure that your journal entries are set up accurately and fix the transactions if necessary:

• Good understanding of debits and credits.
• Reverse or delete a journal entry in QuickBooks Online.

I'm available to help with any additional concerns you may have about your fixed assets. If you need assistance with tracking your entries, running reports, or more, please let me know by clicking the Reply button below. I'm ready to offer further support as needed.