cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Intuit

Does QuickBooks Online have an amortisation schedule?

Amortisation of debts and assets in QuickBooks Online will have to be done through manual transactions, such as cheques and journal entries. For example, the amortisation of debts can be done with a cheque.

To process amortisation of debts with a cheque:

  1. Select + New.
  2. Select Cheque.
  3. From the Payee ▼ drop-down menu, select a customer.
  4. From the Bank Account ▼ drop-down menu, select an account.
  5. Enter a Mailing address and a Payment date.
  6. Choose a Location,Project or Class ▼ if applicable (and turned on).
  7. From the Amounts are ▼ drop-down menu, make a selection.
  8. If this is a hand-written cheque, enter a Cheque no and appropriate Payment date.
  9. Under Category, select the loan account.
  10. Enter a description.
  11. Under enter the Amount paid off for the principal loan.
  12. From the VAT ▼ drop-down menu, select a rate.
  13. Select the Billable checkbox if needed.
  14. Enter the Markup% amount.
  15. From the Customer/Project ▼ drop-down menu, make a selection.
  16. From the Class ▼ drop-down menu, make a selection.
  17. On line 2, enter the interest expense account and the interest amount under Amount.
  18. Enter a description.
  19. Note: The amount on your cheque must equal the total of the lines listing principal and interest. For specific information on what accounts should be used, consult your accountant or bookkeeper.
  20. Enter notes under Memo.
  21. Select Save and Close.

To process amortisation of debts with as an expense:

  1. Select + New.
  2. Select Expense.
  3. From the Payee ▼ drop-down menu, select a customer.
  4. From the Payment account ▼ drop-down menu, select an account.
  5. Select a Payment date.
  6. From the Payment method ▼ drop-down menu, select a payment.
  7. Enter a Reference no (Ref no).
  8. From the Location ▼ drop-down menu, select a location.
  9. From the Amounts are ▼ drop-down menu, select a tax.
  10. Under Category, select the loan account.
  11. Enter a description.
  12. Under Amount, enter the amount paid off for the principal loan.
  13. From the VAT ▼ drop-down menu, select a rate.
  14. Select the Billable checkbox if needed.
  15. Enter the Markup % amount.
  16. From the Customer/Project ▼ drop-down menu, make a selection.
  17. From the Class ▼ drop-down menu, make a selection.
  18. On line 2, enter the interest expense account.
  19. Enter an interest amount under Amount.
  20. Follow the same steps above done for line 1.
  21. Enter notes under Memo.
  22. Select Save and Close.

To handle the amortisation of intangible assets, you can create a journal entry to deplete it. To record this transaction you would normally have an expense account setup to track amortisation, along with a sub-account attached to your intangibles asset account for the tracking of the accumulated amortisation. Again, you would want to consult your accountant or bookkeeper to make sure you are using the appropriate accounts.

Once you have these accounts set up:

  1. Select + New.
  2. Select Journal Entry.
  3. From the Currency ▼ drop-down menu, select a currency.
  4. Enter the Journal date to the date you want to reflect the amortisation.
  5. Select Import if you need to add other journal entries outside of QuickBooks online.
  6. On the first line under Account, list your amortisation expense account; list the amount under the Debits (ZAR) column.
  7. Enter a description.
  8. From the Name ▼ drop-down menu, select a customer.
  9. On line 2, under Account, enter your accumulated amortisation sub-account; the system will automatically put the amount in the Credit column.
  10. Repeat the steps you did for line 1.
  11. (Optional) If this asset is amortisable on a regular basis, and the amounts are going to always be the same, select Make Recurring. You can then schedule this transaction to be automatically entered so the amortisation happens without manual data entry on your part. Then select Save template.
  12. Follow the same steps above done for line 1.
  13. Enter notes under Memo.
  14. Select Save and close.

To be sure you are accounting for your amortisation correctly it is best to speak with your accountant or bookkeeper.

Was this helpful?

You must sign in to vote, reply, or post