I’m happy to see you today, ben21.Welcome to the Online Community. I want to ensure your fixed asset and depreciation is properly recorded in your account. Just to clarify are you trying to create a fixed asset account? If yes, you’ll have to set it up first in QBO. Here's how: Go to the Gear icon at the top, then choose Chart of Accounts.In the upper-right, select New.Under Account type, select Current assets.Click on the drop-down for Detail Type, and select the appropriate category.Enter the name of the account.Input the balance amount.Click on Save and Close.Since QBO doesn’t automatically depreciate a fixed asset, you’ll have to manually process it via journal entry. Before doing that, create a depreciate expense account. Here's how: Go to the Gear icon at the top, then choose Accounts and Settings.Click on New in the upper-right .Choose Other expense, and click on Next.Select Depreciation, then choose Next.Enter a name. For example, Asset Loan Depreciation Expense.Click on Finish.For more in-depth information, check out this article: Recording and depreciating assets. To properly track the depreciation asset, I recommend consulting with an account for the correct category type to select. This is also to ensure you calculate the depreciation amount seamlessly. The steps I provided should point you in the right direction. If you have additonal questions or concerns, post a reply. I'll be right here to assist you further.

Question

How do i create a fixed asset register and can depreciation be recorded automatically rather than posting a journal?

Forum|Forum|7 years ago
March 25, 2019
2 replies
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QuickBooks Online

R

Rasa-LilaM

QuickBooks Team

I’m happy to see you today, ben21.

Welcome to the Online Community. I want to ensure your fixed asset and depreciation is properly recorded in your account.

Just to clarify are you trying to create a fixed asset account? If yes, you’ll have to set it up first in QBO.

Here's how:

Go to the Gear icon at the top, then choose Chart of Accounts.
In the upper-right, select New.
Under Account type, select Current assets.
Click on the drop-down for Detail Type, and select the appropriate category.
Enter the name of the account.
Input the balance amount.
Click on Save and Close.

Since QBO doesn’t automatically depreciate a fixed asset, you’ll have to manually process it via journal entry. Before doing that, create a depreciate expense account.

Here's how:

Go to the Gear icon at the top, then choose Accounts and Settings.
Click on New in the upper-right .
Choose Other expense, and click on Next.
Select Depreciation, then choose Next.
Enter a name. For example, Asset Loan Depreciation Expense.
Click on Finish.

For more in-depth information, check out this article: Recording and depreciating assets.

To properly track the depreciation asset, I recommend consulting with an account for the correct category type to select. This is also to ensure you calculate the depreciation amount seamlessly.

The steps I provided should point you in the right direction.

If you have additonal questions or concerns, post a reply. I'll be right here to assist you further.

S

Samuel WVPF

Hi, im really struggling with how to enter the yearly depreciation charge.

I have the following accounts in my Chart of Accounts:

- 1) Accumulated Depreciation (Tangible Asset Account)

- 2) Depreciation Expenses (Expenses Account)

- 3) Furniture and Equipment (Tangible Assets Account)

When my accountant handed everything over to me when i moved over to Quickbooks a couple of years ago he simply put a large negative balance in the Accumulated Depreciation account and a large positive figure in the Furniture and Equipment account. Nothing has been entered since except for a couple of new fixed assets ive bought that have gone into the Furniture and Equipment account.

Is what he has done correct? And what debit/credit journal entry do i do every year end to record the depreciation charge?

Many thanks in advance,

Samuel