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Sell an asset

The process that you use to sell a fixed asset depends on how you track the asset's cost and depreciation. For example, if you track fixed assets by using fixed asset items, you must record the sale of the fixed asset item; while if you use a fixed asset account only to track your fixed assets, you can jump directly to recording the sale with a general journal entry.

Why should I use fixed asset items?

Record the sale of the fixed asset item

If you use items to track your fixed assets, first follow these steps. If not, skip to "If you track fixed assets with fixed asset accounts", below.

  1. Go to the Lists menu and click Fixed Asset Item List.

  2. Click Activities at the bottom of the list and click Create Invoices.

    If prompted for help on choosing a sales form, click No.

  3. Enter the Customer:Job and the date.

  4. In the Item column, display the Items list and select the asset that you want to sell.

  5. In the Amount column, enter the asset's sale price.

  6. Choose Save & Close.

  7. At the prompt about entering more information, click Yes. The Edit Fixed Asset Item window is displayed.

  8. Mark the asset as sold.

    To do this task

    1. If necessary, go to the Lists menu and click Fixed Asset Item List.

    2. Select the fixed asset item you want to mark as sold.

    3. Click Item at the bottom of the list and click Edit Item.

    4. Click the Item is sold checkbox.

    5. (Optional) Click Item is inactive.

      When you make a fixed asset item inactive, QuickBooks keeps the information associated with it but hides it on the list and removes it from any drop-down lists that use items. You can make an item active again at any time.

    6. Enter the Sales Date.

    7. Enter the Sales Price.

    8. Enter any Sales Expense.

    9. (Optional) Add any other information you want to record; for example, a note about the sale in the Notes field.

    10. Click OK.

  9. Mark the asset as inactive.

    Reasons for hiding an item

    Over the course of your business, you'll have items or services that you no longer sell, or a fixed asset that you no longer own. You might think that deleting these items will make your Item List easier to manage. However, if you want to delete an item, it can cause you to lose valuable historical information about your business. For this reason, it's better to hide the item in the list by making it inactive.

    You can reactivate (show) an item or see all items at any time.

    To do this task

    1. Go to the Lists menu and click Item List.

    2. Double-click the item you want to hide.

    3. In the Edit Item window, click Item is inactive.

    4. Click OK.

    See also

Important: If your accountant will update your company file with QuickBooks Fixed Asset Manager, you can stop now. If your accountant does not use QuickBooks Fixed Asset Manager, follow the steps below.

Record the sale with a general journal entry

Before you enter the sale of the fixed asset

Before you enter the sale of a fixed asset, you must know the book value of the asset on your books. If you've been tracking the asset by name, do one of the following:

  • If you've tracked everything about the asset in a single asset account, select the account in the chart of accounts, click Reports at the bottom of the list, and then click QuickReport. The report shows all costs and depreciation entries. The total amount is the current book value. Make a note of this amount.

  • If you've tracked the accumulated depreciation of the asset in a depreciation subaccount, select the account in the chart of accounts, click Reports at the bottom of the list and click QuickReport. The report shows all depreciation entries and the total depreciation for this asset. Make a note of the total depreciation.

  • If you've tracked the asset cost (or value as of your start date) in a different asset account, double-click the account in the chart of accounts. Make a note of the cost (or starting value).

Note: If you've tracked the asset with a fixed asset item and your accountant has updated your company file with the QuickBooks Fixed Asset Manager, you need not follow these steps. To see the year-end book value for the asset, go to the Lists menu and click Fixed Asset Item List. Select the asset in the list, click Item at the bottom of the list, and then click Edit to display the depreciation and book value for the asset as calculated by the Fixed Asset Manager.

  1. Go to the Company menu and click Make General Journal Entries.

  2. Click the Account drop-down list and choose the fixed asset account or subaccount where you track the cost or starting value of the asset.

  3. In the Credit field, enter the cost (or starting value) if you track depreciation in a separate asset account. Otherwise, enter the current book value of the asset as obtained from the QuickReport.

  4. (Optional) In the Name field, enter the name of the asset.

  5. If you track accumulated depreciation in a separate subaccount, fill in a second line.

    1. In the Account column, choose the fixed asset subaccount where you track the accumulated depreciation of the asset.

    2. In the Debit column, enter the total accumulated depreciation of the asset that you obtained from the QuickReport.

    3. (Optional) In the Name column, choose the name of the asset.

  6. Enter the selling price on the next line.

    1. In the Account column, choose the bank account in which you deposited the money from the sale.

    2. In the Debit column, enter the actual amount that you deposited. This amount may be higher or lower than the current book value.

    3. (Optional) In the Name column, choose the name of the asset.

    4. Press Tab so that QuickBooks fills in the difference in the Debit or Credit field of the next line.

  7. Enter the net gain or loss on the next line.

    1. In the Account column, choose the other income account for capital gains and losses.

    2. (Optional) In the Name column, choose the name of the asset.

  8. Save the entry.

See also

KB ID# H_COA_TASK_ASSET_SELL
9/18/2014 10:41:18 AM
PPRDQSSWS404 9102 Pro 2013 caad2a