is Accumulated depreciation on property, plant and equipment credit balance?

Hi there, ajmalmm20. Yes, accumulated depreciation on property, plant, and equipment has a credit balance and functions as a contra asset account, reducing the total asset value. In QuickBooks Online, accumulated depreciation appears directly below the corresponding fixed asset on the balance sheet, which decreases the net book value of those assets.

After you set up your assets, you can record their depreciation; however, QuickBooks doesn't automatically depreciate fixed assets. Instead, you need to manually track depreciation using journal entries.

Please note that calculating asset depreciation is difficult. We recommend working with your accountant to regularly review how you track depreciation.

Check out this article for comprehensive guidance on setting up a depreciation account in QBO: Depreciate assets in QuickBooks Online.

Feel free to return whenever you need assistance.