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.
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To record the sales of an asset in QuickBooks, follow the steps provided below:
- Calculate the Depreciation if it is applicable on the product.
- Debit the Accumulated Depreciation through a journal entry.
- Credit the amount for the asset which was sold.
- Debit the cash amount received on selling the seet.
- Credit the Profit or Loss on the sale of the asset. You can create a Profit/Loss income account to record the same.
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You can also create a sales commission by following the steps provided below:
- From the Settings menu, click on Products and Services
- Click on New.
- Click on Services.
- Mark the ‘I sell this product/service to my customers‘ checkbox and input the required information.
- Click on Save and Close.
- Use this newly created service item on the sales receipt when recording the commission on the sale of the asset.
To know more, you can get in touch with our experts at LIVE CHAT.