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cmpinfo13-gmail-
June 24, 2022
Question

Fixed assets

  • June 24, 2022
  • 1 reply
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Our company purchased livestock (for breeding) and so I need to capture it as a fixed asset. I have made a new account in chart of accounts (fixed asset). My question is this: If the payment reflects on the bank transactions, what is the best way of matching that payment to the fixed asset. When setting up the new account do I give it a value or do I do a journal entry/ transfer linked to the bank transaction? 

I assume the value will not depreciate. 

1 reply

Adrian_A
Adrian_A
June 24, 2022

Thanks for the details, cmpinfo13-gmail-.

 

Leave the value of the fixed asset account as zero. I'm here to help record the purchases.

 

Ideally, when you purchase an item, you'll use that fixed asset account as the expense for the payment. That's why you'll need to enter 0 as the value.

 

Then, create an expense transaction to record the livestock affecting the fixed asset account.

 

Wit the whole process, I still suggest reaching out to your accountant so they can help you identify the next steps.

 

You can also run a Transaction Detail by Account report to show your expense transactions. Here's how:

 

  1. Go to the Reports tab.
  2. On the Find report by name field, look for Transaction Detail by Account.
  3. Click the Customize button.
  4. Click on Filter to expand the options.
  5. On the Transaction Type drop-down, select Expense.
  6. In the Account drop-down, mark the accounts you'd like to view in the report.
  7. Click Run report.

 

You may want to check this article to know more about customizing reports in QuickBooks Online: How to Customize Reports.

 

Feel free to mention me in your reply if there's anything else that you need assistance with. I'm just around the corner to help.

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