Has anyone figured out how to use the Fixed Assets feature for manufacturing assets where depreciation expense is part of COGS

We can track it by selecting the Other Expense Account type and categorizing it as Depreciation in the Detail type, @CFOatA2M, while we're unable to select cost of goods sold (COGS) as a type of depreciation expense account through the Fixed Assets feature.

Here's how:

1. From the Add fixed asset frame, click the Depreciation expense account dropdown.
2. Select +Add new.
3. Enter the Account name and like [Asset Name] COGS.
4. From the Account Type, choose Other Expense.
5. Pick Depreciation as the Detail type.
6. Hit Save.
   
   

    

Given that COGS is classified as an expense account, you can utilize the Other Expense Account type and select Depreciation as the Detail type. However, it is recommended that you consult your accountant for further guidance on using a specialized account type. This approach will enhance the accuracy of tracking your fixed assets within the Fixed Assets feature. Additionally, we have ProAdvisors available to assist you in finding one if needed.

If you expect to use COGS as a depreciation expense, you can create it. However, it will not be displayed in the Fixed Assets feature. Instead, you'll have to manually record it by creating an expense to document the asset value purchased, along with a journal entry that credits fixed assets and debits COGS. Please refer to the following resource for more information: Depreciate assets in QuickBooks Online.

To learn more about managing, disposing of, and deleting fixed assets, this article bestows a comprehensive guide: Add and manage fixed assets in QuickBooks Online.

You'll want to run the Fixed Asset Depreciation Detail and Fixed Assets List report, feel free to view it from the See reports dropdown on the Fixed Assets tab.

To enhance your QuickBooks experience, or if you require assistance with bookkeeping tasks or navigation, please feel free to reach out to our QuickBooks Live Expert Assisted team. These specialized professionals are available to assist you with all your business needs.

Please let us know if you need any further assistance with Fixed assets feature so that we can assist you.

@CFOatA2M 

QB should give you the option to select COGS.  You'll need to make an adjusting entry to reclassify the expense from the expense account chosen under 'Depreciation expense account' on the 'Add fixed asset' screen to COGS.