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Bryan8891
October 3, 2022
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How to record a purchase of multiple equipment on one credit card transaction

  • October 3, 2022
  • 1 reply
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HI Everyone, 

I am new to bookkeeping.. I purchased two printers and one backup battery for my business. It's on the same transaction on my credit card statement. How do I record this transaction? Do I have to create an account for every equipment since I will write off depreciations each year for each. How do I enter this general entry? 

 

Thanks,

    Best answer by Rainflurry

    @Bryan8891 

     

    You can record all of this as under one expense (but separate line items or all as one line item) on your credit card charge.  The IRS does not require you to capitalize and depreciate the cost of equipment/fixed assets if the total is less than $2,500.  And, that $2,500 is per line item on an invoice or the total.  You can Google "IRS de minimis capitalization" for more info.  It is essentially a safe harbor that reduces administrative costs and burdens for small businesses. 

    1 reply

    KlentB
    KlentB
    October 3, 2022

    Thanks for checking out the Community, Bryan8891.

     

    I'm here to guide you in recording that credit card transaction.

     

    You'll have to create a Fixed Asset account in QuickBooks Desktop for every piece of equipment you purchased. This way, you'll be able to track the current value and depreciation of  the things that your company owns,

     

    After that, you'll have to set up the credit card account you use for the transactions. Once you're ready, follow these steps to record the purchase:

     

    1. Go to the Banking menu.
    2. Choose Enter Credit Card Charges.
    3. Select the credit card account from the Credit Card drop-down menu.
    4. Pick a vendor from the Purchased From drop-down menu.
    5. From the Expenses or Items tab, then enter the fixed assets you created earlier.
    6. Set the date, then add a memo as needed.
    7. Select Save & Close.

    I'm also adding these articles to help computes the depreciation of your assets in the program using the Fixed Asset Manager(FAM):

     

    Let me know if you need more help in entering your other business transactions by adding a reply below. Have a good one.

    B
    Bryan8891Author
    October 3, 2022

    would I be able to enter the cost for each item under the same transaction? I think I did it the way you explained but I used item tab instead of expense and listed each item there with cost however, I had to list sales price in there as well. Not sure If I did it right. 

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