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victoriah1956
February 2, 2024
Question

Accumulated Depreciation Report/Quick Report

  • February 2, 2024
  • 2 replies
  • 0 views

QBDT Premier Plus Contractors Ed, 2024 (now)

Last year (2022) was my first year using QBs for the business.  There's a lot I didn't know (& still don't know).

I'm processing new information every day.  We have several Fixed Assets for the business.  Last year (2022),

we had 4 Fixed Assets, plus a group of 179 deductions.  I did NOTHING with these FA in QBs, other than entering the purchases, because I didn't know how or that I should do anything else. They weren't even set up correctly... that I have since learned.

            However, QBs did the Accumulated Depreciation Gen Journal entries on it's own, on 12/31/22.  (screen shot attached).

 

1)  - Should I go in and correctly enter the purchases and the journal entries for those 2022 FAs?  (there is no value left on those to depreciate any further).  Or just leave them as they are now?

 

  How did QBs know to do this, if I have no FAM ?  How did QBs know that I wanted to do the full Depreciation on these smaller ticket items?  Is that a Depreciation Rule built into QBs?

  So, this year, we've added 4 more FA to the family.  I am setting them up correctly (I hope!).  I know that the Accumulated Depreciation balance stays put. 

2)  When I make the journal entries for the depreciation, should I date them the same date of purchase, or should I date them for Dec 31, 2023?

 

3)  We had an older vehicle that we expensed and did not set up a depreciation account for it.  It is salvaged now.  I know there's a method for recording a vehicle taken out of service.  If you have a few minutes, would you kindly direct me to this informaiton?

 

Thanks very much for your time,

 

  

2 replies

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victoriah1956Author
February 2, 2024

Oops!

Here are the screen shots

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SheandL
February 2, 2024

Hi there, victoriah. I appreciate the detailed information you've shared with us. Let me share some insights regarding your queries. 

 

Commonly, you may correctly enter the purchases and the journal entries for those fixed assets even if there's no value left to depreciate. This way, you can ensure that the entries you entered are recorded accurately. Moreover, you can date the journal entries for the depreciation for the period in which it was recorded. If the assets were purchased in 2023, the depreciation journal entries should also be in 2023. Lastly, for the vehicle that has been salvaged and taken out of service, you can make a journal entry to reflect the disposal of the vehicle. 

 

Nevertheless, I still suggest you to ask for your accountant's guidance regarding these matters. They have the expertise and knowledge to provide you with valuable insights and help you make informed decisions about these concerns. 

 

Furthermore, QBDT has a built-in feature that can handle depreciation. That's why it can do this. Also, in the main fixed asset account, QBDT subtracts the depreciation amount from the current value of the asset. In the account that tracks depreciation, QuickBooks enters the depreciation amount as an increase to your company's depreciation expense.

 

For more information, you can check this article: Set up asset accounts to track depreciation in QuickBooks Desktop for Mac.

 

Also, if you want to get started with tracking your fixed asset, you can refer to this article for guidance: Use Fixed Asset Manager in QuickBooks Desktop.

 

Please don't hesitate to get back to us if you have other concerns about accumulated depreciation in QBDT. The Community space is always here anytime.

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victoriah1956Author
February 2, 2024

SheandL

Thanks for your response.

I believe I've read in this community a few times that the FAM function is ONLY for the ACCOUNTANT Version of QBDT.  As noted in my post, I use QBDT Premier Plus Contractor's Ed 2024.

IF you know something more or different than this about the FAM, please share.  I have tried to access it without success a few times.

Thanks, again.

JaeAnnC
JaeAnnC
February 2, 2024

Thanks for getting back to us, @victoriah1956.

 

Yes, you're right. The Fixed Asset Manager (FAM) feature is only available in QuickBooks Desktop (QBDT) Premier Accountant, Enterprise, and Enterprise Accountant. Since you're using QBDT Premier Plus Contractor Edition, you may explore compatible third-party applications that can help you manage your fixed assets. 

 

Additionally, you can generate reports in QBDT to have a closer glance at your company's finances, including your assets and liabilities.

 

It's always my priority to address your concerns about managing your assets. To keep me updated, tag my name in your replies, and I'll be there right away to respond. Stay safe.

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