Skip to main content
I
Iniuan22
December 1, 2018
Solved

Equipment purchase

  • December 1, 2018
  • 4 replies
  • 0 views

Where would in place the purchase of a piece of equipment ($750) in QuickBoo?

Best answer by BettyJaneB

Hi there, @Iniuan22. 

 

I'd like to Welcome you to the Community family. Allow me to share some information on where you can place the purchase of a piece of equipment in QuickBooks Online.

 

Equipment can be recorded as fixed assets, for these are the items that you can't immediately count as an expense when purchased. 

 

To set up an asset, please follow these steps:

  1. Select the Gear Icon at the top.
  2. Under Your Company, choose Chart of Accounts.
  3. On the top right, select New.
  4. Under the Account type, select either Fixed Asset.
  5. Select the detail type that best describes the asset, then click Next.
  6. Name the account.
  7. If you mark the Track depreciation of this asset box, the system will automatically create a Depreciation sub-account for the item.
  8. Fill in the original cost fields.
  9. Select Save and Close.

For more information about this process, please refer to this article: How do I set up an asset?

 

However, if you are unsure on which option to choose, I'd suggest consulting your accountant for assistance. This is to ensure that your books are accurate.

 

You can also get one-on-one help for your business:
Check out QuickBooks Live.

 

This should keep you moving today, @Iniuan22. Please don't hesitate to post any questions that you may have. Cheers to a productive and prosperous day.

4 replies

BettyJaneB
BettyJaneBAnswer
December 1, 2018

Hi there, @Iniuan22. 

 

I'd like to Welcome you to the Community family. Allow me to share some information on where you can place the purchase of a piece of equipment in QuickBooks Online.

 

Equipment can be recorded as fixed assets, for these are the items that you can't immediately count as an expense when purchased. 

 

To set up an asset, please follow these steps:

  1. Select the Gear Icon at the top.
  2. Under Your Company, choose Chart of Accounts.
  3. On the top right, select New.
  4. Under the Account type, select either Fixed Asset.
  5. Select the detail type that best describes the asset, then click Next.
  6. Name the account.
  7. If you mark the Track depreciation of this asset box, the system will automatically create a Depreciation sub-account for the item.
  8. Fill in the original cost fields.
  9. Select Save and Close.

For more information about this process, please refer to this article: How do I set up an asset?

 

However, if you are unsure on which option to choose, I'd suggest consulting your accountant for assistance. This is to ensure that your books are accurate.

 

You can also get one-on-one help for your business:
Check out QuickBooks Live.

 

This should keep you moving today, @Iniuan22. Please don't hesitate to post any questions that you may have. Cheers to a productive and prosperous day.

    garry clarkson
    garry clarkson
    March 13, 2020

    its 6. Name the account where it gets confusing. Do we have to name that 'machinery' or can it be Apple Mac computer -  I did this and now I have two accounts one for the computer then another machinery. Asked before but answers tend to be confusing for the newbie. 

    M
    Malcolm Ziman
    December 1, 2018

    The IRS has a $2,500 rule. If it's less than that you can expense it, to something like "Small Equipment Expenses".  But you may want to record it as a fixed asset in your books for control purposes, and then include it in the book to tax profit reconciliation

      A
      accountingatheart
      December 12, 2022

      I had a quick question. I have a created a power, plant and equipment account for for my client. This is his second year. Do I need to cero out the first year power, plant and equipment amount? or do I leave it like that so it it accumulates over the years?

      B
      BUS PARTS
      February 24, 2025

      I purchased a generator  and I'm not sure where to put it under. We use it for our sewing machine back up and for equipment outside and camera installs when know electric offered.

      Clark_B
      Clark_B
      February 24, 2025

      You can set it up as fixed assets and put it under Machinery & Equipment as the detail type, @bus PARTS. Below, I'll explain why and guide you through it.

       

      To start, the generator can be recorded as fixed assets specific to machinery/equipment because these items can't be immediately classified as expenses upon purchase. It's also important to checkmark the category to monitor depreciation, allowing you to keep track of the expenses and the equipment's original cost. For more precise guidance, consider consulting your accountant for more accurate information.

       

      Here's how to set it up:

       

      1. Navigate to the Gear or Settings icon in the top right corner and select Chart of Accounts.
      2. Click the New button and enter an account name.
      3. Select Fixed Asset as the Account Type and choose Machinery & Equipment as the Detail Type. 
      4. Check the option Create a category to keep track of depreciation to monitor the cost and track the associated depreciation.
      5. Enter the original cost and the date.
      6. Once you have completed these steps, click Save and Close.

       

      For more detailed information, you can check this article: Add an account to your chart of accounts in QBO.

       

      After setting up your assets, you can review this article to learn how to record their depreciation, as QuickBooks Online doesn't automatically depreciate fixed assets: Depreciate assets in QBO.

       

      Moreover, you can refer to this article for a financial snapshot of your company as of a specific date, which includes information on your business's worth, liabilities, and assets. Run a Balance Sheet report in QBO.

       

      Furthermore, have you had the opportunity to learn about our QuickBooks Live Expert Assisted team? They specialize in streamlining transaction sorting and financial management. I highly recommend looking into their services, as they could significantly enhance your accounting process!

       

      Please know you can rely on the Community team for assistance in setting up your purchased generator in QuickBooks. We're here to support you and are eager to help. 

      Terms & ConditionsAccessibility statement