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Banking - For Review - Equipment

Forum|Forum|7 years ago
November 11, 2018
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So I purchased 2 pieces of equipment recently. Paid "cash" with my bank card. They are fixed asset items. I have created Fixed Asset accounts for the items in my Chart of Accounts. However, do I put zero as the Original cost and then "match" the item under "For Review" in "Banking" to the appropriate Fixed Asset? Or where/what should I record the bank record of the purchase under?

If I enter an original cost under the fixed asset, then when I match the transaction to the fixed asset, the asset now has an "account balance" of twice what the cost was.

Help would be appreciated.

QuickBooks Online

Best answer by CanyonLandscaping

After writing my last response, I came to the solution in my brain. Suppose I was overthinking.

When I create the Fixed Asset account, I did not enter any financial values in any of the items and told it I wanted to track depreciation. It created 2 sub accounts, one being "Original Cost". I then went back over to my banking transactions and put the purchase transaction of the equipment (mower) under the sub-account "Original Cost". It now populates as that being the original cost and the banking transaction is no longer needing to be "matched"

qbteachmt

This function should never be used: "do I put zero as the Original cost"

I think what you did is Add a new account and you see the field for Beginning Balance. Never use this. You are always going to have Actual Transactions. The Transaction is taking care of the financial values.

C

CanyonLandscapingAuthor

When I create a Fixed Asset account, the final field is "Original Cost: ____ As of: ____"

I can enter that here and it populates under the new account as a sub-account "Original Cost". However I still have the banking transaction over on the "For Review" page that I must do something with. If I apply it to that Fixed Asset, the Fixed Asset now doubles in cost. Meaning it would depreciate from double the original cost.

C

CanyonLandscapingAuthorAnswer

After writing my last response, I came to the solution in my brain. Suppose I was overthinking.

When I create the Fixed Asset account, I did not enter any financial values in any of the items and told it I wanted to track depreciation. It created 2 sub accounts, one being "Original Cost". I then went back over to my banking transactions and put the purchase transaction of the equipment (mower) under the sub-account "Original Cost". It now populates as that being the original cost and the banking transaction is no longer needing to be "matched"

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