Wherever you sell an asset, you convert it into a liquid asset like cash. Recording such transactions is essential because they help you in creating accurate reports. Further, QuickBooks also enables you to record any commission on the sale of the asset. Like always, you will have to select the appropriate taxes.

Brief Introduction to Assets in QuickBooks

Businesses typically consider assets to be the resources they own that will produce revenue or economic benefits in the future. There are other components of a balance sheet such as liabilities and equity. Generally Accepted Accounting Principles (GAAP) require businesses to separate the items into current assets and non-current assets.

Let’s get more specific about the current and non-current assets categories in QuickBooks:

Current Assets: QuickBooks has this feature that you’ll use to determine how much money you need in order to meet the 12-month liquid cash test. What’s great about this calculation is that it includes assets such as Cash equivalents, Accounts receivable, Inventory, Prepaid expenses and Investments.

Non-Current Assets: Businesses can also own intangible assets and fixed assets. Long-term assets are also called accounts, which are also accounts for intangible assets.

The process of recording the sale of an asset in your QuickBooks account will vary depending on your specific business. With that said, there are still a few ways to record a sale. We’re here to help you figure out if you need us to do it manually or through our software.

To Record The Sales of an Asset in QuickBooks, Follow the Steps Provided Below:

Businesses can make plans to sell the asset, and then cash it in. There are a few key things to keep track of when you do so, like how much revenue you can expect from each sale. If you want to record any kind of commission on that sale, check out QuickBooks.

  1. Calculate the Depreciation if it is applicable on the product.
  2. Debit the Accumulated Depreciation through a journal entry.
  3. Credit the amount for the asset which was sold.
  4. Debit the cash amount received on selling the seet.
  5. Credit the Profit or Loss on the sale of the asset. You can create a Profit/Loss income account to record the same.

Read More: How to Record a Loan Receivable in QuickBooks?

You can Also Create a Sales Commission by Following the Steps Provided Below:

If you want to generate a commission with your sales, you’ll need to add a Services offering and plug-in the appropriate product or service. There are step-by-step instructions in our Help Center to guide you:

  1. From the Settings menu, click on Products and Services
  2. Click on New.
  3. Click on Services.
  4. Mark the ‘I sell this product/service to my customers‘ checkbox and input the required information.
  5. Click on Save and Close.
  6. Use this newly created service item on the sales receipt when recording the commission on the sale of the asset.

Know the List of How to Record Sale of Asset in QuickBooks.

In decision about financial records, fixed assets have accrued important details such as the cost and progress of investments. Below is a list for you to see examples of fixed assets.

  • Buildings and Facilities: Fixed assets are property that is under construction. Usually they are buildings or facilities that exist and are owned. As the work gets completed, an accountant will move the asset to the appropriate fixed asset account.
  • Furniture, Fixtures and Fittings: Nowadays, the term “furniture” encompasses all kinds of tangible items such as office equipment, conference tables, desks, cupboards and so on. Fixtures also entail built-in items that cannot be easily removed such as fireplaces. Fittings such as mirrors, lights and art which can be installed and removed from one place to another are now included in the definition of “furniture.”
  • Leasehold Improvements: Fixed assets refer to any additions or upgrades you make or have it done to the leased property. Such assets can be built-in cabinets, ceilings, interior walls and any electrical or plumbing upgrades.
  • Tools: Tools, which are used in the business, can be assets. These assets can be fixed, depending on their financial value and their company’s value threshold.
  • Vehicles: These assets help store managers by transporting goods and materials.
  • Computer Equipment: Assets includes computers, servers, laptops, desktops, devices, drives and everything related.
  • Computer Software: Software is often considered to be a fixed asset, like any resource that you purchase and own. Fixed assets are those resources that are bought, and then used or consumed over time. Fixed assets can be software packages or cloud-based applications.

QuickBooks includes a fixed asset list to help track individual assets. The QuickBooks software will ask for specific information including the amount of the item, purchase date, and condition.

To ensure that every purchase is recorded accurately, here are instructions.

  • Open the fixed asset item list from the menu bar. Click on the List tab to see a list of fixed asset items.
  • Now choose “Add a New Item”.
  • You should click on the “List Assets” button in the lower left corner of the window. A list of all the items in your inventory will appear with a button at the top that says “New” which you then select. From there, you can enter an asset number or name to search for it.
  • Then log into your account.
  • Next, you should use the “Asset Account” from the drop-down menu to select the asset account that should be used when tracking the value of an asset.
  • In this part of the “Purchase Information”, you can identify how old an item is so that you can make sure it has not been refurbished.
  • Under this section, you need to describe the item by using the “Asset Description” box.
  • Hit the save button.
  • Click on the Next button to save and close the New Item window.

We have in-depth knowledge and support for well trained personnel. We can always guarantee you the best technical experts at the time of your requirement. To know more, you can get in touch with our experts at LIVE CHAT.

Frequently Asked Questions

  1. What is the Fixed Asset Manager in QuickBooks Desktop?

    For locating a Fixed Asset Manager, navigate to Accountant and then select Managed Fixed Asset. From the menu list, choose the appropriate option for your company. You can find them in QuickBooks by clicking on the QuickBooks Fixed Asset Manager option at the bottom of the menu.

  2. We sold an asset that had already been fully depreciated. So, how can I prove that a fixed asset has been sold?

    You’ll need to make a journal entry to delete the asset and the depreciation expense from your books: debit the accumulated depreciation, credit the asset that was sold, debit the cash account (I’m guessing you received cash), and ultimately credit the gain on asset sale – this should be a gain account type. If you’ve withdrawn your assets, your book balance will be zero. Because your book balance is zero, the cash received would be a gain if fully depreciated.

  3. How do I Account for Selling an Asset in Quickbooks?

    How do I record the sale of a Fixed asset with a lost in value for quick books online
    1. Go to Settings and select Chart of Accounts.
    2. Select New.
    3. From the Account Type dropdown, select Other Expense.
    4. From the Detail Type dropdown, select Depreciation.
    5. Give the account a name, like “[Asset] depreciation]”

  4. What is the journal entry of sale of asset?

    When the business makes profits by selling fixed assets, a journal entry in the name of ” Profit on sale of fixed assets to be booked and the assets which are sold to be omitted from “Fixed Assets Register” will always be used. This entry focuses on whether or not the assets are sold and their value at current market prices.

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