Does anyone know how to zero out fixed assets with a JE in QBDT?
My client doesn't always tell me when he isn't using a fixed asset anymore or sells one. The fixed asset item list has been a mess for several years. I was lucky and inherited the file!
What I would like to do is zero out the items that I know are disposed of or sold.
It seems like I may be able to zero them all out and add back in the assets that I know he still has.
"What I would like to do is zero out the items that I know are disposed of or sold.
It seems like I may be able to zero them all out and add back in the assets that I know he still has."
It's not that simple. There is depreciation that needs to be taken into account. You can't just offset them with current fixed assets because there are offsetting entries that need to be entered to offset the current fixed asset (cash if paid for or loan liability if financed). When an asset is sold, there should be a deposit if sold for cash or a note receivable if financed and that, along with the original cost and accumulated depreciation, determines gain/loss. You close them out by removing the asset (credit), closing accumulated depreciation (debit), recording the sale price of the asset (cash or note receivable if financed - debit) and recording the difference to gain/loss (credit/debit). If they were disposed of, then you need to do the same but there is no recording of the sale price and the difference goes to loss or, if fully depreciated, then the fixed asset is closed against accumulated depreciation and there's no gain/loss.
I'll ensure you'll be routed to the right person to assist you further on how to zero out fixed assets with a Journal Entry (JE) in QuickBooks Desktop (QBDT),JRG26.
I recommend consulting an accountant for additional assistance with the correct posting accounts to use. This ensures that these transactions will recorded accurately and in compliance with accounting standards.
Alternatively, you can also find a ProAdvisor here:https://proadvisor.intuit.com/app/accountant/search.
Also, we have a feature that allows us to track fixed assets in QBDT Accountant versions. You can check these resources for more details:
Set up Fixed Asset Manager (FAM)
Manage Fixed Assets Using Fixed Asset Manager (FAM)
Use Fixed Asset Manager in QuickBooks Desktop
Feel free to reply to this thread if you need additional assistance managing your fixed assets and any QuickBooks-related concerns. I'll be on the lookout. Stay safe.
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Rainflurry
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April 03, 202404:26 PM
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zero out fixed assets in quickbooks desktop
@JRG26
"What I would like to do is zero out the items that I know are disposed of or sold.
It seems like I may be able to zero them all out and add back in the assets that I know he still has."
It's not that simple. There is depreciation that needs to be taken into account. You can't just offset them with current fixed assets because there are offsetting entries that need to be entered to offset the current fixed asset (cash if paid for or loan liability if financed). When an asset is sold, there should be a deposit if sold for cash or a note receivable if financed and that, along with the original cost and accumulated depreciation, determines gain/loss. You close them out by removing the asset (credit), closing accumulated depreciation (debit), recording the sale price of the asset (cash or note receivable if financed - debit) and recording the difference to gain/loss (credit/debit). If they were disposed of, then you need to do the same but there is no recording of the sale price and the difference goes to loss or, if fully depreciated, then the fixed asset is closed against accumulated depreciation and there's no gain/loss.
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JRG26
Level 2
April 05, 202409:27 AM
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zero out fixed assets in quickbooks desktop
Thank you for the response! I appreciate it very much.
You close them out by removing the asset (credit), closing accumulated depreciation (debit), recording the sale price of the asset (cash or note receivable if financed - debit) and recording the difference to gain/loss (credit/debit).
Go to Advanced accounting, then select Fixed assets (Take me there).Find the asset you want to dispose of and select the Action dropdown ▼.Select Delete.
Loss on asset sale: Debit cash for the amount received, debit all accumulated depreciation, debit the loss on the sale of an asset account, and credit the fixed asset.
You close them out by removing the asset (credit), closing accumulated depreciation (debit), recording the sale price of the asset (cash or note receivable if financed - debit) and recording the difference to gain/loss (credit/debit).
Organizations dispose of a fixed asset at the end of its useful life or when appropriate, if, for example, the asset is no longer being used. The journal entry to record a disposal includes removing the book value of the fixed asset and its related accumulated amortization from the general ledger (and subledger).
The accounting treatment for the disposal of a completely depreciated asset is a debit to the account for the accumulated depreciation and a credit for the asset account.
The term “write-off” refers to the value of the asset,(the amount written off) not the asset itself. Fixed asset disposal on the other hand involves the removal of the asset itself, and the associated economic impact of it. That is, gain or loss.
This process begins by accessing the 'Fixed Asset Item List' and selecting 'Asset' from the 'Type' dropdown menu. Then, you enter the asset's name, purchase date, purchase cost, and any relevant notes. The next step is to assign a unique tracking number to the asset for easy identification.
Fixed Asset Manager (FAM) is a feature available in QuickBooks Desktop that computes depreciation of fixed assets based on the standards published by IRS.
Calculate the asset's depreciation amount. The first step is to ensure you have the accurate value of the asset recorded at the time of its disposal. ...
Record the sale amount of the asset. ...
Credit the asset. ...
Remove all instances of the asset from other books. ...
Calculate Accumulated Depreciation: Determine the total accumulated depreciation of the asset up until the date of the write-off. Record the Write-off: Make a journal entry to debit (reduce) the Accumulated Depreciation account and credit (reduce) the corresponding Fixed Asset account.
Introduction: My name is Nathanael Baumbach, I am a fantastic, nice, victorious, brave, healthy, cute, glorious person who loves writing and wants to share my knowledge and understanding with you.
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