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Fixed asset record problem

Forum|Forum|4 years ago
February 14, 2022
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Hello,

I purchased a piece of equipment for $522.95 with my business credit card. I first added the fixed asset in my chart of accounts, entering the original cost, date, and depreciation information. I recorded the expense on my credit card account so my balance reflects correctly, but now QBO shows my equipment expense as $1,045.90 because it is duplicating the cost. How do I fix this?

Thank you!

QuickBooks Online

Best answer by AileneA

Hello, jonboudreaux.

Yes, deleted opening balance will no longer show in your Balance Sheet. Opening Balance Equity is a special QuickBooks account in the equity section of the Balance Sheet. The most common reason why the Opening Balance Equity account is not balanced is the transactions in your register were voided, deleted, or changed. Also, let's make that there are no transactions linked to that account to delete the opening balance equity.

You can read through this article to learn more about opening balance equity account: Understanding the Opening Balance Equity Account.

Please have an accountant double check your records to make sure everything is recorded correctly.

For additional information on how to manage your QuickBooks account, feel free to visit this article: Help articles. I’m sure you’ll find it helpful.

Let me know if there's anything else I can help you. I'll be here to lend an extra hand as soon as I can. Take care!

AlexV

Hi there jonboudreaux!

Thanks for reaching out to us. I know the reason why it's duplicating. Let me help you.

You don't need to record it as an expense since you already entered the cost of the equipment when you created the asset account. This is the reason why it doubled.

You'll want to remove the opening balance (original cost) if you want to reflect the cost to both the asset account and the credit card. Go to your Chart of Accounts, find the asset account, and click View register. Search the entry that has Opening Balance on the Memo, select it, then click Delete.

Once done, open the expense transaction you created for this equipment. Select the credit card account as the Payment account and make sure to only select the asset account under the Category details.

This is what the transaction should look like:

I also included these articles if you need help with recording loan and depreciating assets:

Please know that the QuickBooks Community has your back if you need further assistance. Wishing you and your business continued success.

J

jonboudreauxAuthor

Hi,

Thank you very much for the assistance! I followed your steps exactly, and it looks like it fixed the balance sheet. However, it decreased my Opening Balance Equity by the cost of the equipment ($522). Did I make a mistake?

Jon

A

AileneAAnswer