Skip to main content
G
GP international
August 14, 2023
Question

Fixed asset feature and bonus depreciation

  • August 14, 2023
  • 1 reply
  • 0 views
I just discovered the fixed assed feature, becasue before we used the non inventory product to lounch a computer for example. In 2021 and 2022 we used the bonus depreciation to fuly depreciate the asset so we used a journal entry to do that. Now, with this new tool, I'd like to know how can i bonus depreciate an item recorded in the fixed assed feature
Or more, a journal entry can differently depreciate an item scheduled to be depreciate in 5 year?

1 reply

J
JamesAndrewM
August 14, 2023

I'll share some guidelines to help you get through this.

 

If you haven't set up a depreciation account, here is how to create one:

 

  1. Go to Settings ⚙ and select Chart of Accounts.
  2. Click New.
  3. From the Save account under ▼ the dropdown, select Other Expenses.
  4. From the Tax form section ▼ dropdown, choose Depreciation.
  5. Give the account a name, like "[Asset] depreciation]"
  6. Click Save.

 

You can now track your assets and their depreciation. Then, create a journal entry to record the lost value. Follow these steps:

 

  1. Go to + New. Then select Journal entry.
  2. On the first line, select the asset account you use to track the loan from the Account dropdown. Enter the depreciated amount in the Credits column.
  3. On the second line, choose the Depreciation account you created from the Account dropdown. Enter the same depreciated amount in the Debits column.
  4. Click Save.

 

Refer to this article for more details: Depreciate assets in QuickBooks Online.

 

I highly recommend consulting with your accountant for the most effective methods to use.

 

For future reference, read these extra modules about how to manage accounts in QBO.

 

 

Feel free to post here again if you have further QuickBooks-related concerns. We are available 24/7 to lend a hand with each of your queries. Stay safe!

G
GP internationalAuthor
August 14, 2023

This is exactly what we did in the past, but know that the fixed asset feature is in quickbook i understood the tool will automatically posts month by month the depreciation. right? My question is how to interact with this posted values for example in case of an accelerated (bonus) depreciation is needed.

 

 

C
CharleneMaeF
August 14, 2023

This feature helps you automatically calculate book depreciation, GP international.

 

When setting up fixed assets, QuickBooks Online Advanced allows you to choose the Depreciation method. The program automatically creates the schedule. Therefore, we're unable to enter the accelerated depreciation of your assets. 

 

I understand the importance of manually tracking bonus depreciation. I recommend sending feedback directly to our Product Development team. Doing so helps us improve your experience and the features of the program. 

 

Here's how:

 

  1. Go to the Accounting menu and select Fixed assets.

  2. Click Give feedback.

  3. Enter the suggestions you want to add to the feature and how likely you recommend the feature.
  4. Once done, click Submit.

 

Furthermore, I suggest generating the Fixed Asset Report. It'll help you monitor your data and verify the accuracy of the recorded information. Here are the steps to follow:

 

  1. Go to the Reports menu.
  2. Type in Fixed Asset Report in the search field, then click it.

  3. Select Customize to personalize the data you want to see.

 

Feel free to ask if you have further questions or need more help managing your assets. I'm always here to provide answers and ensure your experience is smooth. 

Terms & ConditionsAccessibility statement