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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.

    Mark the asset as sold.
  9. Mark the asset as inactive.

    Mark the asset as inactive.

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
9/3/2015 10:06:34 AM
QYPPRDQBKSWS07 9125 Pro 2015 e4efed