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WJCope
January 15, 2025
Question

QB Desktop - Vehicles

  • January 15, 2025
  • 1 reply
  • 0 views

We did not purchase trucks.  We did a guy a favor and put quite completed his jobs for his customers and he gave us trucks and some office supplies.  I have all of the asset accounts added, just not sure if I should put the blue book value in as the "opening balance" or if I should do it another way please help.  Thank you

    1 reply

    Rainflurry
    Rainflurry
    January 16, 2025

    @WJCope 

     

    If you received the trucks and office supplies as payment for the jobs, the fair market value (FMV) should be recorded as income, not opening balance.     

      W
      WJCopeAuthor
      January 16, 2025

      That makes sense.  Also, I did not write up the agreement and I'm waiting for a copy.  If they are written up as some type of gift/sale with no money exchange would I list them as assets with opening balance?  I really appreciate your help!  Thanks!

      Rainflurry
      Rainflurry
      January 17, 2025

      @WJCope 

       

      "If they are written up as some type of gift/sale with no money exchange would I list them as assets with opening balance?"

       

      The best way to record this IMO is to create the truck's fixed asset in your chart of account if you haven't already.  Then, create a service product called "Payment - Truck" and select the newly-created truck fixed asset account under the 'Income account' drop-down menu.  Finally, create an invoice/sales receipt for the job(s) like normal but list the Payment - Truck as a line item as a negative amount so the invoice nets to $0.  That will put the value of the truck in it's fixed asset account and an offsetting amount as income.  There's no reason to use opening balance in this case because you know what the offsetting account should be - income.  If the FMV of the truck exceeds what you would have charged for the job, you can either increase the income on the invoice to match the FMV or create a journal entry (New > Journal entry) for the difference (debit the truck's fixed asset account, credit the appropriate income account).  Hope that helps.   

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