tracking sales

VMR302 · ‎February 22, 2022

I own a small llc where I purchase used motorcycles and part them out for sale.

Currently, I enter the entire cost of the used motorcycle into an asset account.

My question is, how to add reduce that asset account as parts are sold?

Is there a better way for me to account for the cost of the original motorcycle purchased?

As mentioned, my business is very small so I am currently using qb online Simple Start.

Any help will be appreciated.

Thank you,

DivinaMercy_N · ‎February 22, 2022

Hi there, @VMR302.

I just got here the steps to ensure you'll be able to account for the motorcycle purchase in QuickBooks Online (QBO). One way of recording vehicle purchases in QBO is by creating a check. I'll show you how:

In your QBO account, click on the +New icon then, choose Check.
Input the necessary information.
Next, select the correct Bank/Credit Account.
From the Category drop-down, pick the correct asset account, and enter the Amount.
Once done, select Save and Close.

For your reference in the process, please see this article: Create and record checks in QuickBooks Online.

Then, you can create a Journal Entry to add and reduce the asset account. From there, you can credit the asset that was sold and debit the accumulated depreciation and the cash account (if you received cash). Then, credit your gain on the sale of assets (this should be another income account type). However, I still recommend reaching out to your account before doing the process. This is to ensure that your books are accurate and to avoid messing up your data.

In case you'll want to have data that shows the debits and credits amounts of a specific transaction, you can run a Transaction Journal Report on QBO.

If you need further assistance in recording your vehicle expense, feel free to add a reply below. I'm just a few clicks away to help. Take care.

View solution in original post

Tori B · ‎February 23, 2022

Hi there, @VMR302.

Thanks for following up with us. Please know that any time you have a question or concern, we will always be here to lend a hand.

I wanted to mention that if a transaction has been entered incorrectly, you can always delete or edit it, making the transaction correct, so your books are always right. I've included some steps to delete and edit transactions below.

Go to the Sales or Expenses menu.
Find the transaction. Select the dropdown in the Action column and click on View/Edit to open the transaction.
If you want to include the date and reason you're voiding or deleting the transaction, enter that info in the Memo or Message section. Then hit Save.
Click More in the footer. Then tap Void or Delete.
Select Yes to confirm.

For additional information about this process, check out Void or delete transactions in QuickBooks Online.

However, before you make any changes to your account, please know that it's always best to consult with your accountant, as my colleague mentioned above.

Don't hesitate to reach back out if you have any questions or concerns. Have a great day, Ray!

View solution in original post

DivinaMercy_N · ‎February 22, 2022

Hi there, @VMR302.

I just got here the steps to ensure you'll be able to account for the motorcycle purchase in QuickBooks Online (QBO). One way of recording vehicle purchases in QBO is by creating a check. I'll show you how:

In your QBO account, click on the +New icon then, choose Check.
Input the necessary information.
Next, select the correct Bank/Credit Account.
From the Category drop-down, pick the correct asset account, and enter the Amount.
Once done, select Save and Close.

For your reference in the process, please see this article: Create and record checks in QuickBooks Online.

Then, you can create a Journal Entry to add and reduce the asset account. From there, you can credit the asset that was sold and debit the accumulated depreciation and the cash account (if you received cash). Then, credit your gain on the sale of assets (this should be another income account type). However, I still recommend reaching out to your account before doing the process. This is to ensure that your books are accurate and to avoid messing up your data.

In case you'll want to have data that shows the debits and credits amounts of a specific transaction, you can run a Transaction Journal Report on QBO.

If you need further assistance in recording your vehicle expense, feel free to add a reply below. I'm just a few clicks away to help. Take care.

VMR302 · ‎February 23, 2022

Thank you Divina.

That seems pretty simple and straight forward and I really appreciate your help.

I'm not sure if it is alright to ask you another question and if not please just ignore it and I apologize.

There are times when I have made purchases for my llc as part of non llc items with my personal credit card.

I created a liability account "company owes me". At the end of the year I normally just move the money owed me to my Owner's Equity account instead of taking a cash payout.

There are a couple of entries into the liability account that were entered as additions instead of deductions (ie, I cannot locate a receipt so I deduct the amount from monies owed me).

How can I remove these additions and change them to deductions in that account?

Once again, thank you for your time and for being so helpful,

Ray (VMR302)

Tori B · ‎February 23, 2022

Hi there, @VMR302.

Thanks for following up with us. Please know that any time you have a question or concern, we will always be here to lend a hand.

I wanted to mention that if a transaction has been entered incorrectly, you can always delete or edit it, making the transaction correct, so your books are always right. I've included some steps to delete and edit transactions below.

Go to the Sales or Expenses menu.
Find the transaction. Select the dropdown in the Action column and click on View/Edit to open the transaction.
If you want to include the date and reason you're voiding or deleting the transaction, enter that info in the Memo or Message section. Then hit Save.
Click More in the footer. Then tap Void or Delete.
Select Yes to confirm.

For additional information about this process, check out Void or delete transactions in QuickBooks Online.

However, before you make any changes to your account, please know that it's always best to consult with your accountant, as my colleague mentioned above.

Don't hesitate to reach back out if you have any questions or concerns. Have a great day, Ray!

VMR302 · ‎February 23, 2022

Thank you Tori.

I really appreciate your taking the time to help.

Have a great day,

Ray

Topics

Training

Community

Resources

tracking sales

tracking sales

tracking sales

tracking sales

tracking sales

tracking sales

tracking sales

Need to get in touch?