Purchasing Fixed Assets

When you purchase a fixed asset, you need to set up an account to keep track of the asset. You can create this fixed asset account by entering a new account in the Chart of Accounts or by adding to the Fixed Asset Item List.

Enter a Fixed Asset in the Chart of Accounts

Press Ctrl+A to open the Chart of Accounts; then press Ctrl+N to open the New Account window.

Select Fixed Asset for the account type.

Enter a name for this asset.

Check the Subaccount of box and enter a subaccount name if this asset is to be categorized as a subaccount of another account.

Enter optional information in the description and note fields to provide additional information about the asset.

If you plan to use QuickBooks to assist in your tax preparation, you might want to assign a tax line to this asset at this time. Depending on your type of business, the tax line might not be necessary for a fixed asset.

If you're entering an asset you owned prior to creating your QuickBooks file, you can enter the beginning balance information. If you plan to enter the purchase of this asset separately, leave the opening balance field blank.

Click OK.

Enter a Fixed Asset in the Fixed Asset Item List

Select Fixed Asset Item List from the Lists menu; then press Ctrl+N to open the New Item window.

Enter a name for this asset.

Did You Know?

It's wise to give fixed assets unique names. Although it's not a requirement that you assign unique names to your assets, you can more easily distinguish one from another when you give each asset a different name. Even if the names are simple, such as Desk 1, Desk 2, and Desk 3, when you look at a report of your assets, you know at a glance that you are looking at different assets and not a duplicate entry of the same asset.

Indicate whether the asset was new or used when you acquired it.

Enter the asset description that appears on the bill you received from your vendor.

Enter the date you acquired this asset.

Enter the cost of the asset.

Enter the vendor from whom you purchased the asset.

Enter the account where you will record the cost of the asset.

Enter an optional description for the asset.

Enter optional information about the asset, including location, numbers, and warranty expiration date, as well as optional notes.

Click OK.