Recording fixed asset purchases accurately in QuickBooks Desktop is essential for proper financial management and tracking of valuable assets. This guide will walk you through the step-by-step process of recording a fixed asset purchase in QuickBooks Desktop, ensuring accurate and organized financial records.
Section 1: Setting Up Accounts
1.1. Create a Fixed Asset Account:
- Launch QuickBooks Desktop and open your company file.
- Navigate to the “Lists” menu and select “Chart of Accounts” or use the keyboard shortcut Ctrl+A.
- Click on the “Account” drop-down menu, select “New,” and choose “Fixed Asset” as the account type.
- Provide a name for the fixed asset account and any additional details. Click “Save & Close” to create the account.
Read Also : How To Record Down Payment On Fixed Asset In QuickBooks Online?
Section 2: Creating a Purchase Transaction
2.1. Create a Vendor:
- Go to the “Vendors” menu and select “Vendor Center.”
- Click on the “New Vendor” button and enter the necessary details for the vendor who sold you the fixed asset. Click “OK” to save the vendor information.
2.2. Create a Purchase Order (Optional):
- Go to the “Vendors” menu and select “Create Purchase Orders.”
- Fill in the required information, including the vendor, items, quantities, and prices related to the fixed asset purchase.
- Click “Save & Close” to create the purchase order.
2.3. Create a Bill:
- Go to the “Vendors” menu and select “Enter Bills.”
- Select the appropriate vendor from the “Vendor” drop-down menu.
- Fill in the necessary information, such as the invoice date, terms, and due date.
- In the “Expenses” tab, select the fixed asset account you created in Section 1.1 in the “Account” column.
- Enter the purchase amount in the “Amount” column.
- Click “Save & Close” to record the bill.
2.4. Pay the Bill (Optional):
- If you want to pay the bill immediately, go to the “Vendors” menu and select “Pay Bills.”
- Select the bill you just created from the list of bills.
- Choose the appropriate payment method and enter the payment details.
- Click “Pay Selected Bills” to record the payment.
Read Also : How To Record Down Payment On Fixed Asset In QuickBooks Desktop?
Section 3: Asset Register Entry
3.1. Open the Fixed Asset Item List:
- Go to the “Lists” menu and select “Fixed Asset Item List.”
3.2. Create a New Item:
- Click on the “Item” drop-down menu and select “New.”
- Choose “Fixed Asset” as the item type and provide a name for the fixed asset.
- Fill in the necessary details, such as the purchase date, purchase cost, and vendor.
- In the “Account” field, select the fixed asset account you created in Section 1.1.
- Click “OK” to save the item.
Read Also : What Is QuickBooks Has Reached The Maximum Number Of Unregistered Uses & How To Fix?
Section 4: Record Depreciation (Optional)
4.1. Set Up Depreciation:
- Go to the “Lists” menu and select “Fixed Asset Item List.”
- Double-click on the fixed asset item to open its details.
- Click on the “Depreciation” tab and set up the necessary depreciation information, such as the method, start date, and life of the asset.
- Click “OK” to save the depreciation settings.
Read Also : How To Create A Estimate In QuickBooks Desktop & Online?
Section 5: Verify and Reconcile
5.1. Review Accounts and Reports:
- Periodically review the fixed asset account and ensure that it reflects the correct balance.
- Generate reports like the Balance Sheet and Fixed Asset Reports to reconcile the fixed asset purchases and ensure accuracy.
Read Also : How To Create A Quote In QuickBooks Desktop & Online?
Conclusion:
By following the steps outlined in this guide, you can accurately record fixed asset purchases in QuickBooks Desktop. Properly documenting these transactions will help maintain organized financial records and facilitate effective asset management. Regularly reviewing accounts and reconciling reports will ensure the accuracy of your fixed asset records within QuickBooks Desktop.